To solve this problem, we can use the formula for continuous compound interest, which is A = P * e^(rt), where:

- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (in decimal).
- t is the time the money is invested for in years.

Given in the problem:
P = $300
r = 7% = 0.07
t = 4 years

Substitute these values into the formula:

A = 300 * e^(0.07*4)

Calculate the exponent first:

0.07 * 4 = 0.28

Then calculate e raised to this power:

e^0.28 ≈ 1.32313

Then multiply this by the principal amount:

300 * 1.32313 ≈ $396.94

So, the answer is approximately $396.94, which is closest to option A. $396.93.

Question

To solve this problem, we can use the formula for continuous compound interest, which is A = P * e^(rt), where:

- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (in decimal).
- t is the time the money is invested for in years.

Given in the problem:
P = $300
r = 7% = 0.07
t = 4 years

Substitute these values into the formula:

A = 300 * e^(0.07*4)

Calculate the exponent first:

0.07 * 4 = 0.28

Then calculate e raised to this power:

e^0.28 ≈ 1.32313

Then multiply this by the principal amount:

300 * 1.32313 ≈ $396.94

So, the answer is approximately $396.94, which is closest to option A. $396.93.

Knowee AI · Accepted Answer