Suppose you invest $500 at an annual interest rate of 7.1% compounded continuously. How much will you have in the account after 4 years? Round the solution to the nearest dollar.

Question

Mathematics

Kylie Hendricks

13 August, 23:57

Suppose you invest $500 at an annual interest rate of 7.1% compounded continuously. How much will you have in the account after 4 years? Round the solution to the nearest dollar.

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Answers (1)

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Davidson · Answer 1

Answer: You will have $664.22 after 4 years of continuous interest.

To find the value of your investment using continuous interest, you have to use the equation: A = Pe^ (rt)

Just plug in the values you know and evaluate:

A = 500e^ (0.071x4)

A = $664.22 is the amount of your account after 4 years.