Question

If $315 is invested at an interest rate of 3% per year and is compounded continuously, how much will the investment be worth in 9 years? Use the continuous compound interest formula: A = Pert.

$206.23
$412.64
$2,343.56
$4,687.11

Answer 1

Answer: $412.64

Step-by-step explanation: you’re welcome :)

Answer 2

`\$412.64`

Explanation:

we know that

The formula to calculate continuously compounded interest is equal to

`A=P(e)^(rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

e is the mathematical constant number

we have

`t=9\ years\\ P=\$315\\ r=0.03`

substitute in the formula above

`A=\$315(e)^(0.03*9)=\$412.64`