Answer:
B. $3525.43
Step-by-step explanation:
We will use continuously compound interest formula to solve our problem.
[tex]A=P*e^{rT}[/tex]
A= Amount after T years.
P= Principal amount.
r= Interest rate (in decimal form).
e= The mathematical constant e.
T= Time in years.
First of all we will convert our interest rate in decimal form.
[tex]7.9\text{ Percent}=\frac{7.9}{100}=0.079[/tex]
Now let us substitute our given values in above formula.
[tex]A=1600*e^{0.079*10}[/tex]
[tex]A=1600*e^{0.79}[/tex]
[tex]A=1600*2.2033964262559365[/tex]
[tex]A=3525.4342820094984\approx 3525.43[/tex]
Therefore, we will get an amount of $3525.43 after 10 years and option B is the correct choice.
