Ask Question
7 March, 12:34

How much would $500 invested at 8% interest compounded continuously be worth after 3 years? round your answer to the nearest cent?

+4
Answers (1)
  1. 7 March, 13:04
    0
    Amount of investment after n years at continuous compounding is givent by A = Pe^rn; where P is the initial investment, r is the rate.

    Therefore, the value of $500 invested at 8% interest compounded continuously is given by 500e^ (0.08 x 3) = 500e^0.24 = 500 x 1.2712 = $635.62
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “How much would $500 invested at 8% interest compounded continuously be worth after 3 years? round your answer to the nearest cent? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers