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A person places $728 in an investment account earning an annual rate of 4.4%, compounded continuously. Using the formula 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 16 years.

Answer :

Luv2Teach

Answer:

Step-by-step explanation:

For us,

P = 728,

r = .044,

e is Euler's number (a constant), and

t is 16. Filling in:

[tex]V=728e^{(.044)(16)}[/tex] and

[tex]V=728e^{(.704)}[/tex] and

V = 728(2.02182385) so

V = $1471.89

A person places $728 in an investment account earning an annual rate of 4.4%, compounded continuously. The value of the account in t years is $1471.89.

We have given that,

P = 728,

r = 0.044,

e is Euler's number (a constant), and

t = 16.

What is the formula of the account in t years?

The formula of the account in t years is,

[tex]V = Pe^{rt}[/tex]

Use the given value in the above formula,

V = 728(2.02182385)

Therefore we get,

V = $1471.89

Therefore, the value of the account in t years is $1471.89.

To learn more about the account balance visit:

https://brainly.com/question/25987747

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