Question

Question 8 of 53

How much would $700 be worth after 8 years, if it were invested at 5%
interest compounded continuously? (Use the formula below and round your
answer to the nearest cent.)
A(t) = P•e^rt
A. $5887.12
B. $1044.28
C. $6432.11
D. $38,218.71

Answer 1

9514 1404 393

Answer:

B. $1044.28

Explanation:

Putting the given numbers into the given formula, we have ...

A(8) = $700•e^(0.05•8) ≈ $1044.28