Question

Gabriela invests $1,000 into a continuously compounding account with an annual interest rate of 16 percent. Use the formula P(t)=1,200e0.16t
to determine the amount of money in the account after one year.(1 point)

$1,408.21

$1,601.81

$1,350.31

$1,200.21

Answer 1

P(1) = 1200·e^{0.16·1} = 1200·e^{0.16} ≈ 1200·1.17351087 ≈ $1,408.21.