How much would $500 invested at 4% interest compounded continuously be worth after 7 years? Round your answer to the nearest cent.

A. $640.00

B. $648.71

C. $657.97

D. $661.55

The answer is D. $661.55

A = P * eᵃˣ

A - the future value

P - the principal

a - the rate

x - the period of time

We know:

A = ?

P = $500

a = 4% = 4%/100% = 0.04

x = 7

A = P * eᵃˣ

A = 500 * e⁰.⁰⁴*⁷

A = 661.55