The kwans are saving for their daughter’s college education. if they deposit $12,000 in an account bearing 6.4% interest compounded continuously, how much will be in the account when ann goes to college in 12 years? a. $12,768 c. $21,216.12 b. $25,865.41 d. $76,800

Amount after 12 years will be modeled by compound formula given by:
A=Pe^(rn)
where:
A=future amount
p=principle
r=rate
n=time
thus given that:
p=$12000
n=12 years
r=6.4%
then the amount after 12 years will be:
A=12000(e^(0.064*12)
A=12000e^(0.768)
A=25, 865.41

$25, 865.41

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