Question

How much would $500 invested at 8% interest compounded continuously be worth after 3 years? round your answer to the nearest cent?

Answer 1

$635.61

Step-by-step explanation:

a p e x :))

Answer 2

Amount of investment after n years at continuous compounding is givent by A = Pe^rn; where P is the initial investment, r is the rate.

Therefore, the value of $500 invested at 8% interest compounded continuously is given by 500e^(0.08 x 3) = 500e^0.24 = 500 x 1.2712 = $635.62