Question

how much would $500 invested at 6% interest compounded continuously be worth after 4 years? round your answer to the nearest cent

Answer 1

Answer:

He would worth $ 635.62 ( approx )

Step-by-step explanation:

Since, the amount compounded continuously,

$A=Pe^{rt}$

Where, P is the principal amount,

R is the rate per period,

t is the number of periods,

Here, P = $ 500,

r = 6 % = 0.06,

t = 4 years,

By substituting the values,

The amount after 4 years would be,

$A=500e^{0.06\times 4}$

$=500e^{0.24}$

$=\ 635.624575161\approx \ 635.62$

Answer 2

A=pe^rt
A=500×e^(0.06×4)
A=635.62