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A person places $1150 in an investment account earning an annual rate of 5.3%, compounded continuously. Using the formula V = Pe^{rt}V=Pe rt , where V is the value of the account in t years, P is the principal initially invested, e is the base of a natural logarithm, and r is the rate of interest, determine the amount of money, to the nearest cent, in the account after 10 years.

Respuesta :

The amount of money that would be in the investment account with continous compounding would be $12,125.94.

What is the future value of the investment account?

The formula for calculating future value when there is continuous compounding is :

A x e^r x N

Where:

  • A= amount
  • e = 2.7182818
  • N = number of years
  • r = interest rate

1150 x (e^0.053) x 10 = $12,125.94

To learn more about continuous compounding, please check: https://brainly.com/question/26476328

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