Question

If $560 is invested at an interest rate of 9% per year and is compounded continuously, how much will the investment be worth in 5 years?
Use the continuous compound interest formula A = Pert

Answer 1

Answer:

$878.25

Step-by-step explanation:

Continuously compounded interest is:

A = Pe^(rt)

where A is the final amount, P is the initial amount, r is the interest rate, and t is the number of compoundings.

Here, P = 560, r = 0.09, and t = 5.

A = 560e^(0.09×5)

A = 878.25