Question

How much would $700 be worth after 8 years, if it were invested at 5%interest compounded continuously? (Use the formula below and round youranswer to the nearest cent.)

Answer 1

D. $1044.28

EXPLANATION :

From the problem, the present value is P = $700, the interest rate is r = 5% or 0.05, and the time is t = 8 years

Using the given formula :

`A(t)=Pe^(rt)`

Then :

`\begin{gathered} A(t)=700e^(0.05(8)) \\ A(t)=1044.28 \end{gathered}`