Question

if $396 is invested at an interest rate of 13% per year and is compounded continuously, how much will the investment be worth in 3 years ?

Answer 1

154.44

Explanation:

What is 13% of 396?

Y is 13% of 396

Equation: Y = P% * X

Solving our equation for Y

Y = P% * X

Y = 13% * 396

Converting percent to decimal:

p = 13%/100 = 0.13

Y = 0.13 * 396

Y = 51.48

Now multiply by 3 (amount of continuous years)

51.48 * 3

=154.44

Hope it helps!