Question

If $396 is invested at an interest rate of 13% per year and is compounded continuously, how much will the investment be worth in 3 years?

Answer 1

Answer:

$\ 584.88$  

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest  is equal to

$A=P(e)^{rt}$  

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  

$t=3\ years\\ P=\ 396\\ r=0.13$  

substitute in the formula above  

$A=\ 396(e)^{0.13*3}=\ 584.88$  

Answer 2

So
396*0.13=51.48
51.48*3=154.44x100
154.44 divided by 100 100% because % so u need to put100%
154.44/100=1.5444
so the answer is 1.5444


                     hope it's the best answer