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

A (t) = P*e^rt

A. $523.97 B. $475.73 C. $508.00 D. $406.60

Answer A: $523.97

Step-by-step explanation:

Here the principal, P, would be $400; the annual interest rate would be 9%, or 0.09 as a decimal fraction; the elapsed time would be 3 years; and the compound amount is to be calculated using the formula A (t) = P*e^rt.

Then A = $400e^ (0.09) ^3, or

A = $400) (1.309) = $523.986, or $523.99 The initial $400 principal would have grown to $523.97 (Answer A is closest).