Suppose you invest $1600 at an annual interest rate of 7.9% compounded continuously. How much will you have in the account after 10 years?
A. $35,254.34
B. $3,525.43
C. $3,435.91
D. $17,315.27
OPTION C
My answer is 3422.4288600
Okay thank you.
To find out how much you will have in the account after 10 years, we can use the formula for compound interest:
A = P * e^(rt)
Where:
A is the amount of money you will have after t years
P is the initial principal amount (in this case, $1600)
e is the base of the natural logarithm (approximately 2.71828)
r is the annual interest rate (in decimal form, 0.079 for 7.9%)
t is the number of years (10 years)
Now, let's calculate the amount:
A = 1600 * e^(0.079 * 10)
Using a scientific calculator or a software program that can handle exponentials, we can calculate:
A ≈ 1600 * 2.71828^(0.079 * 10)
A ≈ 1600 * 2.71828^0.79
A ≈ 1600 * 2.20264658351
A ≈ $3,524.23 (rounded to the nearest cent)
Therefore, the correct answer is B. $3,525.43