Question

A U.S. citizen invested a $1200 government stimulus check they received on March 1, 2020,

Answer 1

The stocks are worth $ 1396.29 nine months later.

Using the continuous compounding formula,

$A = Pe^{rt}$ where

• A = final amount of stocks
• P = initial amount of stocks = $1200,
• r = compounding rate = 20.2 % = 0.202
• t = 9 months = 0.75 years

Substituting the values of the variables into the equation, we have

$A = Pe^{rt}$

$A = 1200e^{0.202 X 0.75}\\A = 1200e^{0.1515}\\A = 1200(1.1636)\\A = 1396.29$

So, the stocks are worth $ 1396.29 nine months later.

Learn more about continuous compounding here:

brainly.com/question/24722580