Question

A person places $728 in an investment account earning an annual rate of 4.4%, compounded continuously. Using the formula V = Pe^rt where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 16 years.

Answer 1

Answer:

Step-by-step explanation:

For us,

P = 728,

r = .044,

e is Euler's number (a constant), and

t is 16. Filling in:

$V=728e^{(.044)(16)}$ and

$V=728e^{(.704)}$ and

V = 728(2.02182385) so

V = $1471.89