Question

stephan invested $950 in an account that grows continuously at an annual rate of 4.2%. write a function that represents the situation, where A is the value Stephan’s investment after t years. what will his investment be worth to the nearest cent after 10 years

Answer 1

`~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^(rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$950\\ r=rate\to 4.2\%\to (4.2)/(100)\dotfill &0.042\\ t=years\dotfill &10 \end{cases} \\\\\\ A=950e^(0.042\cdot 10)\implies A=950e^(0.42)\implies A\approx 1445.86`