Use the continuous change function A(t) = P * e ^ (rt) to answer the question. You invest $10,500 in an account that grows 3.75% each year. What will be your investment amount after 9 years? (1 point) $14,715.12 $14781.48 $15,049.96 $16,785.21

1 answer

To find the investment amount after 9 years using the continuous change function, we can use the formula:

\[ A(t) = P \cdot e^{rt} \]

Where:

  • \( A(t) \) is the amount of money accumulated after time \( t \),
  • \( P \) is the principal amount (the initial investment),
  • \( r \) is the annual interest rate (as a decimal),
  • \( t \) is the time in years,
  • \( e \) is the base of the natural logarithm (approximately equal to 2.71828).

Given:

  • \( P = 10,500 \)
  • \( r = 0.0375 \) (since 3.75% = 0.0375 in decimal)
  • \( t = 9 \)

Now, plug the values into the formula:

\[ A(9) = 10,500 \cdot e^{0.0375 \cdot 9} \]

First, calculate \( 0.0375 \cdot 9 = 0.3375 \).

Next, calculate \( e^{0.3375} \):

Using a calculator or software, \( e^{0.3375} \approx 1.40243 \).

Now multiply it by the principal:

\[ A(9) \approx 10,500 \cdot 1.40243 \approx 14,715.00 \]

So, the investment amount after 9 years will be approximately \( \text{A}(9) \approx 14,715.00 \).

Thus, the correct answer is:

$14,715.12