How much money invested at 7% compounded continuously for 6 years will yield $500? remember: a = pe^rt

Joe Uhren asked Jan 2, 2023

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23 votes

How much money invested at 7% compounded continuously for 6 years will yield $500?

remember: a = pe^rt

Joe Uhren asked Jan 2, 2023

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20 votes

Answer:

$328.52

Explanation:

let p = x, t = 6 years and r = 0.07. now the formula is x*e^0.42 = 500. e^0.42 is approx. 1.522. divide 500 by that to get about $328.52

Sweenish answered Jan 8, 2023

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