Question

With continuous compounding, a principal of P dollars accumulates to an amount A given by the equation

Answer 1

A)

$\bf \qquad \textit{Continuously Compounding Interest Earned Amount}\\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \ 1000\\ r=rate\to 7\%\to \frac{7}{100}\to &0.07\\ t=years\to &10 \end{cases} \\\\\\ A=1000e^{0.07\cdot 10}$