12 multiple choice 1 point\njeremy is investing $47,000 in an account paying 9.26% interest compounded…

12 multiple choice 1 point\njeremy is investing $47,000 in an account paying 9.26% interest compounded continuously.\nwhat will jeremys account balance be in 42 years?\n$2,296,973.35\n$2,289,042.36\n$2,295,840.63\n$2,197,362.46

12 multiple choice 1 point\njeremy is investing $47,000 in an account paying 9.26% interest compounded continuously.\nwhat will jeremys account balance be in 42 years?\n$2,296,973.35\n$2,289,042.36\n$2,295,840.63\n$2,197,362.46

Answer

Explanation:

Step1: Identify the continuous compounding formula

$$A = P e^{rt}$$

Step2: List the given values

$$P = 47,000, \quad r = 0.0926, \quad t = 42$$

Step3: Substitute values into the formula

$$A = 47,000 \cdot e^{0.0926 \cdot 42}$$

Step4: Calculate the exponent

$$0.0926 \cdot 42 = 3.8892$$

Step5: Calculate the final amount

$$A = 47,000 \cdot e^{3.8892} \approx 47,000 \cdot 48.871773 \approx 2,296,973.35$$

Answer:

$2,296,973.35