Question

Gabriela invests $1,200 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. Include cents, if needed.

Answer 1

P(1) = 1200e^{0.16} = 1200(1.173510847...) ≈ $1,408.21.