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The formula A(t) = 756e^(0.035)t models the growth of an investment due to continuously compounded interest. What does 0.035 stand for?
A) the numbers of years since the initial investment
B) the amount after t years
C) the initial amount invested
D) the interest rate

Respuesta :

Answer:

D) the interest rate

Step-by-step explanation:

The formula for continuously compounded interest is [tex]A(t)=Pe^{rt[/tex] where [tex]P[/tex] is the principal/initial value, [tex]r[/tex] is the interest rate in decimal form, and [tex]t[/tex] is the amount of time since the initial investment. In this case, [tex]r=0.035[/tex] would be an annual interest rate of 3.5% per year.

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