Question

An account earning 6.6% interest compounded continuously for 10 years would have a balance

of how much if the principal was $550.
$984.96
$1046.41
$1064.14

Answer 1

$984.96

You can use the formula for continuously compounded interest: A = P * e^(rt) where A is the final balance, P is the principal, r is the interest rate (as a decimal), and t is the time in years.

Plugging in the given values:

A = 550 * e^(0.066 * 10)

A = 550 * e^(0.66)

A = 550 * 2.92469798

A = $984.96

Answer 2

Answer: The formula for the future value of an account earning interest compounded continuously is given by:

FV = P * e^(rt)

Where:

FV = future value of the account

P = principal or initial deposit

r = annual interest rate as a decimal

t = number of years the account earns interest

In this case:

FV = $550 * e^(0.066*10)

FV = $550 * e^0.66

The future value of the account is $984.96

So, the answer is $984.96

It's worth noting that the result is the future value of the investment, it doesn't take into account any withdrawal or addition of funds. If any of these occurs the final value will be different.

Explanation: