Answer:
The amount in account after 7 years of investment is $1478.4
Step-by-step explanation:
Given as :
The principal invested in account by Jamie = p = $1200
The rate of interest = r = 3% compounded annually
The Time period of investment = t= 7 years
Let The Amount in Jamie account = $ A
For continuous compounding
Amount = Principal × [tex]e^{r \times time}[/tex]
Or, A = p × [tex]e^{r \times time}[/tex]
Or, A = $1200 × [tex]e^{0.03 \times 7}[/tex]
Or, A = $1200 × [tex]2.71^{0.03 \times 7}[/tex]
Or, A = $1200 × 1.232
∴ A = $1478.4
So, The amount after continuous compounding = A = $1478.4
Hence , The amount in account after 7 years of investment is $1478.4 Answer
