If $18000 is invested at an interest rate of 4.5% compounded continuously what is the amount of the investment after 10 years? Rounded to the nearest hundredth.
A) $38626.59
B) $38040.78
C) $38681.90
D) $18000
E) $18828.50

Question

Quizplus · Accepted Answer

The continuous compounding formula is $A=Pe^{rt}$ where $A$ is the final amount, $P$ is the initial investment, $r$ is the interest rate, and $t$ is the time in years. Plugging in the given values, we get $A=18000e^{0.045\cdot10}=38681.90$. Rounding to the nearest hundredth gives us $38681.90\approx\boxed{	extbf{(C)}\ 38681.90}$

If $18000 Is Invested at an Interest Rate of 4