Question

Use the continuous change function A ( t ) = P e r t to answer the question. You invest $10,500 in an account that grows 3.75% each year. What will be your investment amount after 9 years? A. $14,715.12 B. $14781.48 C. $15,049.96 D. $16,785.21

Answer 1

Answer-

Your investment amount after 9 years will be $14,715.12

Solution-

The function is,

$A(t)=Pe^{r.t}$

Where,

e = Euler's constant,

P = capital

A = future value

r = annual rate of interest

Putting the values,

$A(t)=10500e^{(0.0375\times 9)}$

$=10500e^{0.3375}$

$=10500\times 1.4014$

$=14715.12$

Therefore, your investment amount after 9 years will be $14,715.12