If $7,000 is invested at an annual rate of 11.5% compounded continuously, the future value S at any time t (in years) is given by . What is the amount after 12 months? Round your answer to the nearest cent.
A)$27,824.31
B)$7,848.82
C)$17,838.71
D)$7,853.11

Question

If $7,000 is invested at an annual rate of 11.5% compounded continuously, the future value S at any time t (in years) is given by  . What is the amount after 12 months? Round your answer to the nearest cent. ​
A)$27,824.31 
B)$7,848.82 
C)$17,838.71 
D)$7,853.11

Quizplus · Accepted Answer

First, we need to convert 12 months to years, which gives us $t=\frac{12}{12}=1$. 
Plugging in $t=1$ and solving for S, we get $S=7000\cdot e^{0.115\cdot 1}\approx 7,853.11$. Therefore, the answer is D, $7,853.11$.

If $7,000 Is Invested at an Annual Rate of 11