Algebra Problem!

Question

Helen deposited $1200 at 5% interest compounded continuously. After 6 years, how much did she have?

(A) $1619.83

(B) $1560

(C) $2410.26

(D) $1608.11

(E) None of these

For this I got; (D) $1608.11. Is this correct?

Answer 1

The formula for exponential growth is x = x₀(1 = r)^t, where x₀ is the intial amount, r is the rate of growth, and t is the time interval.

In this case, x₀ is 1200, r is 0.05, and t is 6, so plug them in and solve for x:

x = 1200(1.05)⁶ = 1200 x 1.34 = 1608

So you are correct.

Hope this helps