You have your heart set on buying a new car in 2 years. You invest $3,200 at 3.75% interest compounded continuously. How much money will have to use for your down payment on your new car

Answer:The available amount for the down payment of car and invested $3,200 at 3.75% interest compounded continuously is 3449.23$ Explanation:We know final amount is given by  Where, [tex]A=P \times e^{r t}[/tex]A   =   final amount P   =  initial principal balance = $3200 r    =   interest rate = 3.74% t    =  number of time periods elapsed = 2 years Substituting the values in the formula [tex]r=\frac{3.75}{100}=0.0375[/tex]A=[tex]3200 \times e^{(0.0375 \times 2)}[/tex]We know, e = 2.72 So we get A = 3449.23$ which is the available amount for the down payment of car .