Question

question dianelys invested $970 in an account paying an interest rate of 4.4% compounded continuously. assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 13 years? answer attempt 2 out of 5

Explanation:

Step1: Identify continuous compounding formula

The formula for continuous compounding is $A = Pe^{rt}$, where $P$ is principal, $r$ is annual rate, $t$ is time in years.

Step2: Plug in the values

$P = 970$, $r = 0.044$, $t = 13$. So $A = 970e^{(0.044)(13)}$.

Step3: Calculate exponent first

$0.044 \times 13 = 0.572$.

Step4: Compute $e^{0.572}$

$e^{0.572} \approx 1.771$.

Step5: Multiply by principal

$970 \times 1.771 \approx 1717.87$.

Answer:

1717.87