Question

How much would $100 invested at 8% interest compounded continuously be

worth after 15 years? Round your answer to the nearest cent.
A (t) = P*e^rt

Answer 1

The formula for continuously compounded interest is given by A = P * e^(rt), where A is the end balance, P is the initial investment, r is the annual interest rate, and t is the time in years. Plugging in the given values, we have:

A = 100 * e^(0.08 * 15)
A = 100 * e^1.2
A = 100 * 3.320116922736548
A = 332.01

So, $100 invested at 8% interest compounded continuously would be worth $332.01 after 15 years, rounded to the nearest cent.