Answer:
The amount of money that would be in the account after 8 years is approximately $998
Step-by-step explanation:
The given parameters for the compound interest investment are;
The amount Aaron invested = $570
The interest rate of the investment = 7%
The mode of compounding of the interest = Continuously
The number of years the amount is invested = 8 years
For a compounded continuously interest rate, we have;
[tex]A = P \cdot e^{r \cdot t}[/tex]
Where;
A = The future value =The amount realized from the investment after the time of investment
P = The initial value = The principal amount invested
e = Euler's number = Mathematical constant
r = The interest rate = 7%
t = The time of investment = 8 years
Therefore, by substituting the known values, we have;
[tex]A = 570 \times e^{0.07 \times 8} \approx 997.883325[/tex]
The amount of money that would be in the account after 8 years to the nearest dollar = The future value of the investment = A ≈ 998
The amount of money that would be in the account after 8 years to the nearest dollar ≈ $998.
