How much would $400 invested at 9% interest compounded continuously be worth after 3 years? Round your answer to the nearest cent.

A. $475.73
B. $508.00
C. $406.60
D. $523.99

Question

How much would $400 invested at 9% interest compounded continuously be worth after 3 years? Round your answer to the nearest cent. 

 		A.	$475.73
 		B.	$508.00
 		C.	$406.60
 		D.	$523.99

danjs · Answer

Do you remember the continuously compounded interest formula from the previous problems?

anonymous · Answer

this one is A(t)=p *e^rt

danjs · Answer

right on,  p is the principle amount invested 400
r is the rate, 0.09 t is the time 3 yrs

here_to_help15 · Answer

This is really simple, you are just plugging known values into the formula A(t) = Pe^(rt)

P = $400
r = 0.09
t = 3 (years)

A(3) = 400e^(0.09*3)

A(3) = $523.99 *I rounded to the nearest penny, which is customary when rounding dollar amounts.

here_to_help15 · Answer

@DanJS why have you blocked me?