Jasmine invests $1,000 into a continuously compounding account with an annual interest rate of 4 percent. Use the formula P(t)=1,000e0.04t

to determine how much money will be in her account after 15 years.(1 point)
Responses

$1,630.97
$1,630.97

$1,173.51
$1,173.51

$1,822.12
$1,822.12

$1,061.84

1 answer

To determine how much money Jasmine will have in her account after 15 years with continuously compounding interest, we'll use the given formula:

\[ P(t) = 1,000 e^{0.04t} \]

Where:

  • \( P(t) \) is the amount in the account after \( t \) years,
  • \( e \) is the base of the natural logarithm (approximately equal to 2.71828),
  • \( t \) is the time in years.

Plugging in \( t = 15 \):

\[ P(15) = 1,000 e^{0.04 \cdot 15} \]

Calculating \( 0.04 \cdot 15 \):

\[ 0.04 \cdot 15 = 0.6 \]

Now substituting this back into the formula:

\[ P(15) = 1,000 e^{0.6} \]

Next, we calculate \( e^{0.6} \). Using a calculator, we find:

\[ e^{0.6} \approx 1.82212 \]

Now substituting \( e^{0.6} \) back into the formula:

\[ P(15) = 1,000 \cdot 1.82212 \approx 1822.12 \]

Therefore, the amount of money in Jasmine's account after 15 years will be approximately:

\[ \boxed{1,822.12} \]