Question

How much would $400 invested at 9% interest compounded continuously be worth after 3 years? Round your answer to the nearest cent.

Answer 1

In 3 years, you will have $523.97
continuously = daily

Answer 2

Final amount after three years will be $523.46

Explanation:

If $400 have been invested at 9% interest compounded continuously for 3 years then we have to calculate the final amount.

Final amount
`A=A_(0)(1+r/n)^(nt)`

By putting the values in the formula

`A=400(1+9/1200)^(36)=400(1+.0075)^(36)=400(1.3086)=523.46`

Therefore $523.46 will be the amount after 3 years.