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Reika [66]
3 years ago
7

It you invest S500 at an annual interest rate of 10% compounded continuously, calculate the final

Mathematics
1 answer:
lord [1]3 years ago
8 0

Answer:

Step-by-step explanation:

The formula for continuous compounding is

A(t)=Pe^{rt} where A(t) is the amount after all the compounding is done, P is the initial investment, r is the rate as a decimal, and t is the time in years.  Filling in our info:

A(t)=500e^{(.1)(5)}

First raise e to the product of that power to get

A(t)=500(1.64872171)

Multiply those numbers together to get A(t) = $824.36

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