Question

How much would $500 invested at 8% interest compounded continuously be

Answer 1

Answer:

$\ 635.62$  

Step-by-step explanation:

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  

$t=3\ years\\ P=\ 500\\ r=0.08$  

substitute in the formula above  

$A=\ 500(e)^{0.08*3}$  

$A=\ 635.62$