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Whitepunk [10]
3 years ago
15

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

Mathematics
1 answer:
Vlad [161]3 years ago
5 0

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  

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Question One
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