Gabriela invests $1,200 into a continuously compounding account with annual interest rate of 16 percent. Use the formula P(t)=1,200e^0.16t to determine the amount of money in the account after one year. Included cents, if needed.

Answer 1

To find the amount of money in the account after one year, we need to plug in t = 1 into the formula P(t) = 1,200e^0.16t:

P(1) = 1,200e^(0.16*1)

P(1) = 1,200e^0.16

P(1) = 1,200 * 1.17351087099182

P(1) = 1408.21

Therefore, after one year, Gabriela will have $1408.21 in the account.