If P dollars is deposited in a savings account that pays interest at a rate of r % per year compounded continuously, find the balance after t years. (Round your answer to the nearest cent.)

P = 800, r = 6 1/4, t = 4

Step-by-step explanation:

The formula for continuously compounded interest is

A = P x e (r x t)

Where

A represents the future value of the investment after t years.

P represents the present value or initial amount invested

r represents the interest rate

t represents the time in years for which the investment was made.

e is the mathematical constant approximated as 2.7183.

From the information given,

P = $800

r = 6.25% = 6.25/100 = 0.0625

t = 4 years

Therefore,

A = 800 x 2.7183^ (0.0625 x 4)

A = 800 x 2.7183^ (0.25)

A = $1288.0