Question

How much would $150 invested at 8% interest compounded continuously beworth after 17 years? Round your answer to the nearest cent.

Answer 1

Answer: A. $584.43

Step-by-step explanation

Given

`A(t)=P\cdot e^(rt)`

where A(t) is the amount obtained, P is the initial amount, e is a mathematical constant, r is the rate, and t is the time.

Thus, we are also given that:

• P = $150

,

• r = 8% = 0.08

,

• t = 17

Therefore, replacing the values:

`A(17)=150\cdot e^(0.08(17))`
`A(17)=150\cdot e^(1.36)`
`A(17)\approx584.43`