Find the compound amount and the interest earned when the given investment has continuous compounding.
-$\$ 13,000$ at $2.8 \%$ for 3 years
A) $\$ 14,092.00 ; \$ 1092.00$
B) $\$ 14,540.67 ; \$ 1540.67$
C) $\$ 14,139.18 ; \$ 1139.18$
D) $\$ 13,369.14 ; \$ 369.14$

Question

Quizplus · Accepted Answer

The formula for continuous compounding is $ A = Pe^{rt} $. Substituting $ P = 13000 $, $ r = 0.028 $, and $ t = 3 $, we get $ A = 13000 \times e^{0.084} \approx 14139.18 $. The interest earned is $ 14139.18 - 13000 = 1139.18 $.

Find the Compound Amount and the Interest Earned When the Given