Question

I tried the formula but it didn’t work. Please help what am I doing wrong?

Answer 1

Answer:
A = $745.9 (to the nearest cent)

Explanation:
the formula of the continuous compound interest is given as:
A = P * e^(rt)
where:
A is the final amount we want to find
P is the amount invested = $500
r is the interest rate (expressed in decimal) = 5% = 0.05
t is the time in years = 8 years

Substitute with the givens in the above equation to get the amount after 8 years as follows:
A = P * e^(rt)
A = 500 * e^(0.05*8)
A = $745.9 (to the nearest cent)

Hope this helps :)

Answer 2

$A(8) = 500*e^{0.05(8)}$
$A(8) = 500*e^{0.40} \\ A(8) = 500 * 1.492 \\ A(8) = 745.91$