Question

How much would $500 invested at 4% interest compounded continuously be worth after 7 years? Round your answer to the nearest cent

A(t) = P•e^rt

Answer 1

F = 661.56

Explanation:

Continuously compounding interest formula: F = Pe^(rt)

F = future value

P = present value = 500

r = interest rate = 0.04

t = years = 7

F = 500e^(0.04 * 7)

F = 661.56