the formula $a(t)=12,000e^{(0.04)t}$ models the growth of an investment due to continuously compounded…
the formula $a(t)=12,000e^{(0.04)t}$ models the growth of an investment due to continuously compounded interest. what does $t$ stand for?\na the number of years since the initial investment\nb the amount after $t$ years\nc the initial amount invested\nd the interest rate
Answer
Brief Explanations:
In the formula for continuously - compounded interest $A(t)=P e^{rt}$, where $A(t)$ is the amount of money after $t$ years, $P$ is the principal (initial amount), $r$ is the annual interest rate, and $t$ is the time in years since the initial investment. Here, in $A(t)=12000e^{(0.04)t}$, $t$ represents the number of years since the initial investment.
Answer:
A. the number of years since the initial investment