Question

Michael invested $380 into an account that earns 8% interest, compounded continuously. How much will be in the account after eight years round to the nearest cent.

Answer 1

Explanation:

The formula for continuous compound interest is:

A = P(1 + r/100)^t

where A is the amount after t years, P is the principal, r is the annual interest rate as a decimal, and t is the time in years.

In this case, we have P = $380, r = 0.08 (8%), and t = 8 years. Plugging in these values, we get:

A = 380 x (1+8/100)^8

A= 380 x (1+0.08)^8

A=380 x (1.08)^8

A= 380 x 1.8509..

A= $703.35

Therefore, the amount in the account after eight years, rounded to the nearest cent, is $703.35.