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Aleksandr [31]
3 years ago
11

Suppose you invest $950 at an annual interest rate of 6.5% compounded continuously. How much will you have in the account after

10 years? Round the solution to the nearest dollar.
a.$1913


b.$1731


c.$1724


d.$1820
Mathematics
1 answer:
posledela3 years ago
3 0
The correct answer is $1820.

The formula for continuously compounded interest is

A = Pe^(rt), where P is the amount of principal, r is the interest rate expressed as a decimal number, and t is the number of years.  Using our information, we have:

A = 950*e^(0.065*10) = 1819.76 ≈ 1820
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