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17 November, 20:00

How much will $100 grow to if invested at a continuously compounded interest rate of 9.25% for 9 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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  1. 17 November, 20:08
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    It will grow to $229.91

    Explanation:

    Amount (A) = Pe^rt

    P is the amount invested = $100

    r is the rate of return = 9.25% = 9.25/100 = 0.0925

    t is the duration of the investment = 9 years

    A = 100e^ (0.0925 * 9) = 100e^0.8325 = $229.91 (to 2 decimal places)
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