Question

Isabella invests $10,000 in an account that is compounded continuously at an annual interest rate of 3%, according to the formula A=Pert
, where A
is the amount accrued, P
is the principal, r is the rate of interest, and t is the time, in years. Apply the formula to find out how much Isabella’s investment will be worth in 15 years, to the nearest dollar.(1 point)

$10,304


$15,683


$13,499


$900,171

Answer 1

A = 10000 e^{0.03·15} = 10000 e^{0.45} ≈ 10000(1.568311) ≈ $15,683.