Solve the problem.
-An initial investment of $1740 is appreciated for 14 years in an account that earns 7% interest, compounded continuously. Find the amount of money in the account at the end of the period. Round to the nearest cent.
A)$6,127,559.21
B)$12,856.96
C)$4636.15
D)$2868.78

Question

Quizplus · Accepted Answer

The formula for continuous compounding is A = Pe^(rt), where P is the principal amount ($1740), r is the interest rate (0.07), and t is the time in years (14). Plugging in these values, A = 1740 * e^(0.07*14) ≈ $4636.15.

Solve the Problem. -An Initial Investment of $1740 Is Appreciated for 14 Years