Answer:
A = $745.9 (to the nearest cent)
Explanation:
the formula of the continuous compound interest is given as:
A = P * e^(rt)
where:
A is the final amount we want to find
P is the amount invested = $500
r is the interest rate (expressed in decimal) = 5% = 0.05
t is the time in years = 8 years
Substitute with the givens in the above equation to get the amount after 8 years as follows:
A = P * e^(rt)
A = 500 * e^(0.05*8)
A = $745.9 (to the nearest cent)
Hope this helps :)
