Question

How much would $500 invested at 9% interest compounded continuously be worth after 4 years? Round your answer to the nearest cent.

Answer 1

=705.79

Explanation:

F=P(1+i)n where F is the Future amount P is the Present amount/Capital i is the interest rate n is the number of periods.

In this case you have the given as follows:

P = $500 i = 9% n = 4 years

Substituting the values to the formula you'll have:

F=500(1+0.09)^4

=705.79