Question

If $535 is invested at an interest rate of 6% per year and is compounded continuously, how much will the investment be worth in 10 years? use the continuous compound interest formula: a = pert $1307. 12 $974. 83 $973. 38 $403. 43.

Answer 1

The Amount of investment equals $974.83.

The continuous compound interest helps to calculate an investment that are reinvested into the balance over a infinite number of periods.

• The formula for continuous compound interest is A=P^e^(r*t)

Amount of investment = $535 * e^(6%*10)

Amount of investment = $535 * 1.82211880039

Amount of investment = $974.833558209

Amount of investment = $974.83

Therefore, the Option B is correct since the Amount of investment equals $974.83.

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