Question

How much would $100 invested at 8% interest compounded continuously be worth after 15 years? Round your answer to the nearest cent.



A. $220.00
B. $317.22
C. $332.01
D. $285.67

Answer 1

\[\large A=Pe^{rt}=100e^{(0.08\times15)}\]
Can you finish it now?

Answer 2

yes i got C

Answer 3

Good work! You are correct.

Answer 4

thanks

Answer 5

You're welcome :)

Answer 6

@kropot72
but this formula gave this value
\(\large\tt \begin{align} \color{black}{FV=PV(1+r)^n\\
=100(1+0.08)^{15}\\
=317.21}\end{align}\)

Answer 7

@mathmath333 The reason for your result is that you have not used the formula for continuous compounding. There is a good explanation here:
http://en.wikipedia.org/wiki/Compound_interest

Answer 8

oh,thnks

Answer 9

You're welcome :)