If Juan deposits $7,450 in a savings account that earns 3.1% compounded continuously, how much money should he expect to be in the account in 2 years? Round your answer to two decimal places.
A) $476.52
B) $7,926.52
C) $7,911.90
D) $15,361.90

Question

Quizplus · Accepted Answer

The formula for continuous compounding is $A = Pe^{rt}$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), and $t$ is the time the money is deposited for in years. Plugging in the given values: $A = 7450e^{0.031*2}$, we get $A ≈ 7926.52$.

If Juan Deposits $7,450 in a Savings Account That Earns