Question

If $396 is invested at an interest rate of 13% per year and is compounded continuously, how much will the investment be worth in 3 years? Use the continuous compound interest formula: A = Pert $584. 88 $583. 66 $581. 27 $268. 11.

Answer 1

The worth of investment of $396 after 3 years will be $584.884. Thus, option A is correct.

The interest rate has been the amount of the interest that has been paid on the principal amount of the loan. The compounding has been resulted with the interest by using the expression:

$A=Pe^r^t$

Where, from the given investment, Invested amount or principal amount is $P=\ 396$.

Rate of interest per year is $r\;\rm is\;13\%=0.13$ .

Time of investment is $t=3$ years.

Substituting the values for the compound amount (A) after 3 years has been:

$A=396\;\times\;e^{0.13\;\times\;3}\\A=584.884$

The worth of investment of $396 after 3 years will be $584.884. Thus, option A is correct.

For more information about the compound interest, refer to the link:

brainly.com/question/15062056