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How much would $500 invested at 8% interest compounded continuously be

worth after 3 years? Round your answer to the nearest cent.​

1 Answer

4 votes

Answer:


\$635.62

Explanation:

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=3\ years\\ P=\$500\\ r=0.08

substitute in the formula above


A=\$500(e)^(0.08*3)


A=\$635.62

User Julien Jacobs
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