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Suppose you invest $600 at an annual interest rate of 6.8% compounded continuously. How much will you have in the account after 5 years? A. $5,921.63 b. $842.97 c. $554.53 d. $3,211.10

User Rsenna
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10 votes

Answer:

b. $842.97

Explanation:

The computation of the amount after 5 years in the case of compounded continuously is as follows:

= Invested amount × e^{rate × time period}

= $600 × e^{6.8% × 5}

= $600 × e^ 0.34

= $600 × 1.404947591

= $842.97

Hence, the amount after 5 years in the case of compounded continuously is $842.97

User Mbrcknl
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