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Leah wants to invest $12,000 in an account that pays 4.5% annual *interest. Answer the questions below. Which equation represents the amount inthe account after t years if the interest in compounded continuously.

Leah wants to invest $12,000 in an account that pays 4.5% annual *interest. Answer the questions below. Which equation represents the amount inthe account after class=

Answer :

To solve this problem we use the Continuous Compound Interest formula:

[tex]A(t)=Pe^{rt}[/tex]

Where A = total balance after t years, P = principal amount , r = interest rate (decimal form), and t = time in years.

Replacing the formula

[tex]A(t)=12000e^{0.045t}[/tex]

The answer is option 1

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