Answer: you would have $1772 at the end of 10 years.
Step-by-step explanation:
The formula for continuously compounded interest is
A = P x e (r x t)
Where
A represents the future value of the investment after t years.
P represents the present value or initial amount invested
r represents the interest rate
t represents the time in years for which the investment was made.
e is the mathematical constant approximated as 2.7183.
From the information given,
P = $1200
r = 3.9% = 3.9/100 = 0.039
t = 10 years
Therefore,
A = 1200 x 2.7183^(0.039 x 10)
A = 1200 x 2.7183^(0.39)
A = $1772 to the nearest dollar
