Step-by-step explanation:
[tex][/tex] We can use the formula for continuous compound interest:
A = P × e^(rt)
Where:
A = the amount of money in the account after the specified time period
P = the principal amount (initial deposit) = $4000
r = the annual interest rate = 2% or 0.02
t = the number of years = 10
e = Euler's number, approximately equal to 2.71828
Plugging in these values:
A = $4000 × e^(0.02×10)
A = $4000 × e^0.2
A = $4000 × 1.221402
A = $4885.61
Therefore, after 10 years with continuous compounding interest at a rate of 2%, the certificate of deposit will be worth approximately $4885.61.
