Question

How much would $500 invested at 4% interest compounded continuously beworth after 7 years? Round your answer to the nearest cent. Use 2.718 for e.A(t) = P. et

Answer 1

Step-by-step explanation:

The compound interest formula is given below as

`A(t)=P* e^(rt)`

Where,

`\begin{gathered} P=500 \\ r=(4)/(100)=0.04 \\ t=7 \end{gathered}`

By substitutng the values, we will have

`\begin{gathered} A(t)=p* e^(rt) \\ A(t)=500*2.718^(0.04*7) \\ A(t)=\text{ \$}661.55 \end{gathered}`

Hence,

The final answer is

OPTION D is the correct answer