Question

A person invests $3,500 in an account that earns 7.5% interest compounded continuously. What is the value of the investment after 4 years?

Answer 1

I think it's: 4,674.14$

Answer 2

Answer:

A = $4724.36

Step-by-step explanation:

P = $3500

r = 7.5% = 0.075

t = 4years

n = 365

     $A = P(1 + \frac{r}{n})^{nt}$

        $=3500(1 + \frac{0.075}{365})^{365 \times 4}\\\\=3500(1.00020547945)^{365\times4}\\\\= 3500 \times 1.34981720868\\\\= 4724.36023037\\\\= \ 4724.36$