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If $125 is invested at an interest rate of 18% per year and is compounded continuously, how much will the investment be worth in 2 years? Use the continuous compound interest formula A = Pert.

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Luv2Teach

Answer:

$179.17

Step-by-step explanation:

You already know the formula but you have it typed incorrectly.  The rt is raised as a power to the e.  Just in case you didn't know that.  Filling in our formula with what we have gives us:

[tex]A(t)=125e^{(.18)(2)[/tex]

Simplify that power to .36 and we have

[tex]A(t)=125e^{.36}[/tex]

Now raise e to the power of .36 on your calculator and get

A(t)= 125(1.433329415)  and

A(t) = $179.17

Answer:

C 179 is the answer.

Step-by-step explanation:

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