E none of these
Explanation
The continuous compounding formula says
[tex]\begin{gathered} A=P*e^{rt} \\ where \\ A\text{ is the final amount} \\ Pis\text{ the initial amount} \\ r\text{ is the rate of interest} \\ t\text{ is the time} \end{gathered}[/tex]
so
Step 1
find the final amount:
a)Let
[tex]\begin{gathered} P=2500 \\ r=5\text{ \% = }\frac{5}{100}=0.05 \\ time=\text{ 10 years} \end{gathered}[/tex]
b) now, replace
[tex]\begin{gathered} A=Pe^{rt} \\ A=2500(e^{0.05*10}) \\ A=2,500(e^{0.5}) \end{gathered}[/tex]
so, the final amout would be:
[tex]A=2,500(e^{0.5})[/tex]
Step 2
know to know the average, divide by the numbers of years
so
[tex]\begin{gathered} average=\frac{P}{time} \\ Average=\frac{2500(e^{0.5})}{10} \\ Average=250(e^{0.5}) \end{gathered}[/tex]
so, the answer is
E none of these
I hope this helps you
