Question

How much would $500 invested at 4% interest compounded continuously be worth after 7 years? Round your answer to the nearest cent.
A. $640.00
B. $648.71
C. $657.97
D. $661.55

Answer 1

When you fill in your unknowns using the info they provided, your formula looks like this:

Answer 2

\[A(t)=500e ^{(.04)(7)}\]

Answer 3

which simplifies to:

Answer 4

\[A(t)=500e ^{.28}\]

Answer 5

Your calculator has a button on it that gives you e^x, right?

Answer 6

Take e^.28, hit enter, then multiply that result by 500.

Answer 7

\[e ^{.28}=1.323\]\[500 * 1.323=$661.55\]

Answer 8

D