Answer
a. $10170$
b. $11466.6$
c. $13728.1$
d. $18531$
Work Step by Step
We are given
$P=\$ 8000$
$t=12$
We use the formula for continously compounded interest with
a. $r=0.02$
$A(12)=8000e^{(0.02)12} \approx 10170$
b. $r=0.03$
$A(12)=8000e^{(0.03)12} \approx 11466.6$
c. $r=0.045$
$A(12)=8000e^{(0.045)12} \approx 13728.1$
d. $r=0.07$
$A(12)=8000e^{(0.07)12} \approx 18531$
