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How much would $500 invested at 3% interest compounded continuously be

worth after 6 years? Round your answer to the nearest cent.
A(t) = Poet
A. $593.22
B. $597.03
C. $590.00
D. $598.60

1 Answer

3 votes

Answer:

d

Explanation:

598.60

You are given the equation

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

Where P = Principal

r = interest rate

t = time

e is a mathematical constant equivalent to approx 2.71828

You're told the initial Principal is $500, the interest rate is 3%, over 6 years. So you have everything that you need to solve the problem, just plug in the values and solve for A(6)

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

A(6) = 500 * e^(0.03 * 6)

A(6) = 500 * e^(0.18)

A(6) = 500 * 2.71828^(0.18)

A(6) = 500 * 1.19721

A(6) = 598.60861

So $500 invested 6 years ago at 3% would be worth $598.61 today.

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