Question

If $396 is invested at an interest rate of 13% per year and is compound continuously, how much will the investment be worth in 3 years?

Answer 1

A=pe^rt

A=396×e^(0.13×3)

A=584.88

i did the test

Answer 2

The investment at the end of the period will be $584.89.

Explanation:

FV = PV e⁽ⁿˣ⁾

FV = Future Value = ?

PV = Present Value = $396

n = Interest Rate = 13%

x = time in years = 3

e = mathematical constant = 2.7183

FV = 396 x 2.7183⁽⁰°¹³ ˣ ³⁾

FV = 396 x 1.4770

FV = $584.89