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evablogger [386]
3 years ago
12

If $516 is invested at an interest rate of 9% per year and is compounded continuously, how much will the investment be worth in

5 years?
Mathematics
1 answer:
m_a_m_a [10]3 years ago
6 0

Answer:

$809.25

Step-by-step explanation:

You are going to want to use the continuous compound interest formula, which is shown below.

A = Pe^{rt}

<em>A = total</em>

<em>P = principal amount</em>

<em>r = interest rate (decimal)</em>

<em>t = time (years)</em>

<em />

First, lets change 9% into a decimal:

9% -> \frac{9}{100} -> 0.09

Lets plug in the values now:

A=516e^{0.09(5)}

A=809.25

<u>The investment will be worth $809.25 after 5 years.</u>

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