What is the total amount for an investment of $100 invested at 3.5% for 8 years and compounded continuously?
a) $131.68
b) $135.44
It's one of these two answers but I can't seem to get it right.

Question

What is the total amount for an investment of $100 invested at 3.5% for 8 years and compounded continuously? 
a) $131.68
b) $135.44
It's one of these two answers but I can't seem to get it right.

johnweldon1993 · Answer

Hmm well we can use the formula

$$\large A = P e^{rt}$$

P = 100
r = .035
t = 8

So we have

$$\large A =100e^{8 \times .035}$$
$$\large A = 100e^{.28}$$
$$\large A = 132.31$$

I think it is just a case of rounding error there....but you know it cannot be BIGGER than this number since the number would have been rounded down...so if it MUST be one of those two..it would be the first

anonymous · Answer

OMG thanks for your help, but I tried that. It came out wrong. :/ I put in $132.31. But it said "incorrect". so I tried $128... and wrong again. the other 2 choices are my only options left!! :/

johnweldon1993 · Answer

These other 2 choices posted? well then try the A) answer.....131.68

like I said it cannot be above the number I posted (or at least shouldn't be)

anonymous · Answer

Yeah..I'm gonna try that. since it is closer to $132.31.

anonymous · Answer

Yay!! Got it right. :) thanks so much for your help, maybe the test is wrong itself.. haha

johnweldon1993 · Answer

Yeah it is :D haha but glad you got it :)