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how much would $500 invested at 3% interest compounded continuously be worth after 6 years? Round your answer to the nearest cent. Use 2.718 for e. A(t)=Pe^(rt)

User Trying
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1 Answer

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You are given the equation

A(t) = P*e^(rt)

Where P = Principal

r = interest rate

t = time

e is a mathematical constant equivalent to approx 2.71828

You're told the initial Principal is $500, the interest rate is 3%, over 6 years. So you have everything that you need to solve the problem, just plug in the values and solve for A(6)

A(t) = P*e^(rt)

A(6) = 500 * e^(0.03 * 6)

A(6) = 500 * e^(0.18)

A(6) = 500 * 2.71828^(0.18)

A(6) = 500 * 1.19721

A(6) = 598.60861

So $500 invested 6 years ago at 3% would be worth $598.61 today.

User Adnan Isajbegovic
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