Question

Suppose you deposit $600 into an account that pays 5% annual interest, compounded continuously. How much will you have in the account in 4 years? ƒ(t) = aert A) $4,433.43 B)635.62 C)$729.30 D)$732.84

Answer 1

D)$732.84

Explanation:

A=p(1+r/n)^nt

P=principal=$600

r=5%=0.05

t=4 years

n=12 months

A=p(1+r/n)^nt

=600(1+0.05/12)^12*4

=600(1+0.0041666666666 )^48

=600(1.0041666666666 )^48

=600( 1.2208953550215 )

=732.53

A=$732.53

Option D)$732.84 is the answer