Deposit: $1,000
Annual interest: 4% = 0.04
Years: 3
For this type of question, when the question asks you to "continuously compound", you use this formula: [tex]Pe^{rt}[/tex]
Solving:
[tex]1000e^{(0.04)(3)} \\1000e^{0.12} \\=1127.50[/tex]
The value of Joaquin's investment after 3 years = 1,127.50$
