if you deposit $750 in an account that pays 8% annual interest compounded continuously, what will the…

Answer:

B. $$1,277.16$

Explanation:

Step1: Identify the formula

The formula for continuous - compounding is $A = Pe^{rt}$, where $A$ is the final amount, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert the interest rate

Given $r = 8%=0.08$, $P=$750$, and $t = 5$ years.

Step3: Substitute values into the formula

$A=750\times e^{0.08\times5}$.

Step4: Calculate the exponent

$0.08\times5 = 0.4$. So, $A = 750\times e^{0.4}$.

Step5: Find the value of $e^{0.4}$

Using a calculator, $e^{0.4}\approx1.4918247$.

Step6: Calculate the final amount

$A=750\times1.4918247\approx1277.16$.