Isabella invests $10,000 in an account that is compounded continuously at an annual interest rate of 3%, according to the formula
A= Pe^rt, where A is the amount accrued, P is the principal, r is the rate of interest, and t is the time, in years. Apply the formula
to find out how much Isabella's investment will be worth in 15 years, to the nearest dollar. Your options are..
O $13,499
To find out how much Isabella's investment will be worth in 15 years, we need to substitute the given values into the formula A = Pe^rt.
P = $10,000
r = 3% = 0.03 (expressed as a decimal)
t = 15 years
Substituting these values into the formula:
A = 10000 * e^(0.03 * 15)
Using a calculator to evaluate the exponent:
A ≈ 10000 * e^(0.45)
A ≈ 10000 * 1.57003
A ≈ 15700.3
Rounding to the nearest dollar:
A ≈ $15,700
Therefore, Isabella's investment will be worth approximately $15,700 in 15 years.