How much would $500 invested at 9% interest compounded continuously be worth after 4 years? Round your answer to the nearest cent.

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Mathematics

Guest

4 December, 02:15

How much would $500 invested at 9% interest compounded continuously be worth after 4 years? Round your answer to the nearest cent.

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Answers (1)

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Petie · Answer 1

=705.79

Step-by-step explanation:

F=P (1+i) n where F is the Future amount P is the Present amount/Capital i is the interest rate n is the number of periods.

In this case you have the given as follows:

P = $500 i = 9% n = 4 years

Substituting the values to the formula you'll have:

F=500 (1+0.09) ^4

=705.79