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If $315 is invested at an interest rate of 3% per year and is compounded continuously, how much will the investment be worth in 9 years? Use the continuous compound interest formula: A = Pert.
$206.23
$412.64
$2,343.56
$4,687.11

Respuesta :

calculista

Answer:

[tex]\$412.64[/tex]

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest is equal to

[tex]A=P(e)^{rt}[/tex]  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest in decimal  

t is Number of Time Periods  

e is the mathematical constant number

we have  

[tex]t=9\ years\\ P=\$315\\ r=0.03[/tex]  

substitute in the formula above  

[tex]A=\$315(e)^{0.03*9}=\$412.64[/tex]

Answer: $412.64

Step-by-step explanation: you’re welcome :)

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