Question

How much would $500 invested at 3% interest compounded continuously be

Answer 1

Answer:

d

Step-by-step explanation:

598.60

You are given the equation 

A(t) = P*e^(rt) 

Where P = Principal 

r = interest rate 

t = time 

e is a mathematical constant equivalent to approx 2.71828 

You're told the initial Principal is $500, the interest rate is 3%, over 6 years. So you have everything that you need to solve the problem, just plug in the values and solve for A(6) 

A(t) = P*e^(rt) 

A(6) = 500 * e^(0.03 * 6) 

A(6) = 500 * e^(0.18) 

A(6) = 500 * 2.71828^(0.18) 

A(6) = 500 * 1.19721 

A(6) = 598.60861 

So $500 invested 6 years ago at 3% would be worth $598.61 today.