Question

Write a formula that describes the value of an initial investment of $1,200, growing an interest rate of 4% compounded continuously.​

Answer 1

Answer: OPTION D A = 1200.e(0.04)(t)

Explanation:

If the interest is compounded continuously for t years at a rate of r per year, then the compounded amount is given by:

A = P. e rt

P =$1200, r = 4% , t = t years

A = 1200.e(0.04)(t)

Answer 2

Continuous compound is e^rate x time

The formula would be D. 1200e^0.04t