Question

How much would $300 invested at 9% interest compounded continuously be worth after 3 years? Round your answer to the nearest cent. A.$306.11B.$381.00C.$364.18D.$392.98

Answer 1

D. $392.98

EXPLANATION :

Recall the compounded continuously formula :

`A=Pe^(rt)`

Where A = future value

P = present value ($300)

e = Euler's number

r = rate of interest (9% or 0.09)

t = time in years (3 years)

Using the formula above :

`\begin{gathered} A=300e^(0.09(3)) \\ A=392.98 \end{gathered}`