If $535 is invested at an interest rate of 6% per year and is compounded continuously, how much will the investment be worth in

Question

2 years ago

8

10 years? use the continuous compound interest formula: a = pert $1307. 12 $974. 83 $973. 38 $403. 43.

1 answer:

Norma-Jean [14] · Answer 1 · 2023-05-27T18:16:15+03:00

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.

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.