Answer:
The available amount for the down payment of car and invested $3,200 at 3.75% interest compounded continuously is 3449.23$
Explanation:
We know final amount is given by
Where,
[tex]A=P \times e^{r t}[/tex]
A = final amount
P = initial principal balance = $3200
r = interest rate = 3.74%
t = number of time periods elapsed = 2 years
Substituting the values in the formula
[tex]r=\frac{3.75}{100}=0.0375[/tex]
A=[tex]3200 \times e^{(0.0375 \times 2)}[/tex]
We know, e = 2.72
So we get A = 3449.23$ which is the available amount for the down payment of car .
