Isabella invests $10,000 in an account that is compounded continuously at an annual interest rate of 3%, according to the formula A=Pert , 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.(1 point) Responses $13,499 $13,499 $15,683 $15,683 $900,171 $900,171 $10,304
To find out how much Isabella's investment will be worth in 15 years, we can apply the formula A=Pert, where:
A = amount accrued
P = principal (initial investment)
r = rate of interest
t = time in years
In this case:
P = $10,000
r = 3% or 0.03 (in decimal form)
t = 15 years
A = Pert
A = $10,000 * e^(0.03 * 15) (where e is the base of the natural logarithm)
Calculating this value:
A ≈ $10,000 * e^(0.45)
A ≈ $13,486.65
Therefore, Isabella's investment will be worth approximately $13,486.65 in 15 years, to the nearest dollar.