Answer:
Option B) $122,140
Step-by-step explanation:
we know that
The formula to calculate continuously compounded interest is equal to
[tex]A=P(e)^{rt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
e is the mathematical constant number
we have
[tex]t=5\ years\\ P=\$100,000\\ r=0.04[/tex]
substitute in the formula above
[tex]A=\$100,000(e)^{0.04*5}=\$122,140.28[/tex]
Round to the nearest dollar
[tex]\$122,140.28=\$122,140[/tex]
