The future value that accrues when $900 is invested at 7%, compounded continuously, is S(t) = 900e0.07t where t is the number of years. (Round your answers to the nearest cent.)

Question

(a) At what rate is the money in this account growing when t = 6?

(b) At what rate is it growing when t = 12?

Answer 1

a) The rate of growth is dV/dt where V = 900e^.07t

Take the derivative of V with respect to t and plug in t = 6.

b) Same as (a) but plug in t =12