Question

If $22,000 is deposited in an account paying 3.85% interest compounded continuously, use the continuously compounded interest formula , A=Pe^rt, to find the balance in the account after 11 years.
A. $1,519,356.93
B. $33,600.60
C. $33,416.25
D. $25,416.25

Answer 1

Answer:

B

Step-by-step explanation:

In the equation for interest compounding continuously, the A stands for the amount after the compounding is done, the P is the initial amount invested, the e is Euler's number, the r is the rate in decimal form, and the t is the time in years that the money is invested.  Setting up our equation with the given values looks like this:

$A=22,000e^{(.0385)(11)}$

Multiply the rate with the time to simplify a bit to

$A=22,000e^{.4235}$

Raise e to the power of .4235 on your calculator (hit 2nd then the ln button to get your e) and get

$A=22,000(1.527297754)$

Multiply out to get $33600.55, but rounding up gives you B as your answer.

Answer 2

Answer:

B is the answer

Step-by-step explanation: