How much would $500 invested at 4% interest compounded continuously be worth after 7 years? Round your answer to the nearest cen

Question

Zigmanuir [339]

4 years ago

8

How much would $500 invested at 4% interest compounded continuously be worth after 7 years? Round your answer to the nearest cen

t.
A. $640.00
B. $648.71
C. $657.97
D. $661.55

Mathematics

1 answer:

IRISSAK [1] · Answer 1 · 2021-12-25T06:53:05+03:00

IRISSAK [1]4 years ago

8 0

The answer is <span>D. $661.55
</span>
A = P * eᵃˣ
A - the future value
P - the principal
a - the rate
x - the period of time

We know:
A = ?
P = $500
a = 4% = 4%/100% = 0.04
x = 7

A = P * eᵃˣ
A = 500 * e⁰.⁰⁴*⁷
A = 661.55