Question

How much would $400 invested at 9% interest compounded continuously be worth after 3 years? Round your answer to the nearest cent.

Answer 1

Answer:

Final amount after three years will be $523.46

Step-by-step explanation:

If $400 have been invested at 9% interest compounded continuously for 3 years then we have to calculate the final amount.

Final amount $A=A_{0}(1+r/n)^{nt}$

By putting the values in the formula

$A=400(1+9/1200)^{36}=400(1+.0075)^{36}=400(1.3086)=523.46$

Therefore $523.46 will be the amount after 3 years.

Answer 2

In 3 years, you will have $523.97 
continuously = daily