It you invest S500 at an annual interest rate of 10% compounded continuously, calculate the final
1 answer:
Answer:
Step-by-step explanation:
The formula for continuous compounding is
where A(t) is the amount after all the compounding is done, P is the initial investment, r is the rate as a decimal, and t is the time in years. Filling in our info:
First raise e to the product of that power to get
Multiply those numbers together to get A(t) = $824.36
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Answer: Second Option
Step-by-step explanation:
The exponential growth functions have the following form:
Where a is the main coefficient, b is the base and x is the exponent.
For this type of functions the base b must always be greater than 1. Otherwise it would be an exponential decay function
Among the options given, the only function whose base is greater than 1 is the second option: