If $1000 is invested at an interest rate of 3.5% per year, compounded continuously, find the value of the investment after the given number of years. (round your answers to the nearest cent.)
The key words here are compounded continuously. That being said let's use the continuous growth formula:
[tex]a(t) = p {e}^{rt} [/tex] where a(t) is the final amount after t years, p is the principal amount (starting amount $1000), r is the rate in decimal 3.5% = 0.035. And so for any given year the final amount can be described as:
