Use the continuous change function A (t) = Pet to answer the question.
You invest $3,700 in an account that grows 4.5% each year. What will be your investment amount after 7 yea
(point)
$4,795.91
$4,895.58
$5.069.96
$5,250.55
To find the investment amount after 7 years, we can use the continuous change function:
A(t) = Pet
Where:
A(t) is the investment amount after t years
P is the initial investment ($3,700 in this case)
e is the base of the natural logarithm
t is the number of years
r is the annual interest rate (4.5% in this case, which is equivalent to 0.045 when expressed as a decimal)
Plugging in the values, we have:
A(7) = 3700e^(0.045 * 7)
Using a calculator, we can calculate this expression to get:
A(7) ≈ 3700 * e^(0.315)
A(7) ≈ 3700 * 1.370337091
A(7) ≈ $5075.25
Therefore, the investment amount after 7 years will be approximately $5,075.25.
None of the answer options provided matches this amount. It is possible that there was an error in the question or answer choices provided.
This is wrong
I apologize for the mistake. Let's correct it:
The continuous change function is given by A(t) = Pet.
In this case, the initial investment (P) is $3,700, and the annual growth rate (r) is 4.5% or 0.045 as a decimal. We want to find the investment amount after 7 years (t = 7).
Plugging in the values into the continuous change function:
A(7) = 3700 * e^(0.045 * 7)
Using a calculator, we can evaluate this expression:
A(7) ≈ 3700 * e^(0.315) ≈ 3700 * 1.370955502 ≈ $5,069.96
Therefore, the correct answer is $5,069.96, which is the third option provided.