Question

How much would $400 invested at 9% interest compounded continuously be worth after 3 years? Round your answer to the nearest cent.

Answer 1

Answer:

$523.99

Step-by-step explanation:

We are asked to find the final amount amount that we will get after investing $400 at a rate of 9% interest compounded continuously after 3 years.

We will use compound interest formula to solve our given problem.

$A=Pe^{rt}$, where,

A = Final amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form.

$9\%=\frac{9}{100}=0.09$

$A=400e^{0.09(3)}$

$A=400e^{0.27}$

$A=400(1.3099644507332473)$

$A=523.98578029329892$

$A\approx 523.99$

Therefore, the amount will be worth $523.99 after 3 years.

Answer 2

The formula to that equation:

A(t)=p *e^rt

P is the principle amount invested 400
R is the rate, 0.09 T is the 3 years.

Solve from there.