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5 May, 01:12

If $396 is invested at an interest rate of 13% per year and is compound continuously, how much will the investment be worth in 3 years?

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  1. 5 May, 04:52
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    The investment at the end of the period will be $584.89.

    Step-by-step explanation:

    FV = PV e⁽ⁿˣ⁾

    FV = Future Value = ?

    PV = Present Value = $396

    n = Interest Rate = 13%

    x = time in years = 3

    e = mathematical constant = 2.7183

    FV = 396 x 2.7183⁽⁰°¹³ ˣ ³⁾

    FV = 396 x 1.4770

    FV = $584.89
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