Question

How much would $150 invested at 8% interest compounded continuously be

worth after 17 years? Round your answer to the nearest cent.
A(t) = Poet

Answer 1

`A=\$584.43`

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=17\ years\\ P=\$150\\ r=8\%=8/100=0.08`

substitute in the formula above

`A=150(e)^(0.08*17)`

`A=150(e)^(1.36)`

`A=\$584.43`