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miv72 [106K]
3 years ago
6

If you invest $600 at 5% interest compounded continuously, how much would you make after 6 years?

Mathematics
2 answers:
tiny-mole [99]3 years ago
6 0

Answer:

$809.92

Step-by-step explanation:

(see attached for reference)

Recall that the formula for compound interest (compounded continuously) is

A = P e^(rt)

where,

A = final amount (we are asked to find this)

P = principal = given as $600

r = interest rate = 5% = 0.05

t = time = 6 years

e = 2.71828 (mathematical constant)

Substituting the known values into the equation:

A = P e^(rt)

= 600 e^(0.05 x 6)

= 600 (2.71828)^(0.30)

= $809.92

algol133 years ago
4 0

Answer:

809.915$

Step-by-step explanation:

Amount of money = Principal x e^(rate x year)

                              = 600 x e^(0.05 x 6)

                              = 809.915$

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