Question

Money in a savings account is compounded continuously over time, t, and is modeled by the function

Answer 1

Answer:

  1.7% compounded continuously

Step-by-step explanation:

The model used for continuous compounding is ...

  f(t) = Pe^(rt)

where P is the principal amount, and r is the interest rate being compounded. Assuming a typo in your given equation, you have ...

  f(t) = 1000·e^(0.017t)

Matching the various parts of the equation, we see that P = 1000 and r = 0.017 = 1.7%.

The balance grows at a continuous rate of 1.7%.