1) Since this investment will be done at a 5% interest rate compounded continuously, we can write the following:
[tex]\begin{gathered} A(t)=P_0e^{rt} \\ \\ A(8)=700e^{0.05\times8} \\ \\ A(8)=700e^{0.4} \\ \\ A(8)\approx1044.28 \end{gathered}[/tex]2) So, we can tell that given there will not be withdrawals or another investment in this account, after 8 years the future value is:
[tex]\$1044.28[/tex]Thus, the answer is B.
