Suppose you invest $950 at an annual interest rate of 6.5% compounded continuously. How much will you have in the account after 10 years? Round the solution to the nearest dollar.

a.$1913

b.$1731

c.$1724

d.$1820

The correct answer is $1820.

The formula for continuously compounded interest is

A = Pe^ (rt), where P is the amount of principal, r is the interest rate expressed as a decimal number, and t is the number of years. Using our information, we have:

A = 950*e^ (0.065*10) = 1819.76 ≈ 1820