Question

How much would $500 invested at 3% interest compounded continuously be worth after 6 years? Round your answer to the nearest cent. A.$590.00B.$597.03C.$593.22D.$598.60

Answer 1

The yeild of an investment compounded continuousy is;

`A=Pe^(rt)`

r = 0.03, P = 500, t = 6;

`\begin{gathered} A=500e^((0.03*6)) \\ A=\text{ \$}598.60 \end{gathered}`