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19 August, 11:36

Use the formula below to find the value of $1300 invested at 4.2% interest compounded continuously for 5 years 9 months. Round your final answer to the nearst hundred or cent and show your work

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  1. 19 August, 11:47
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    Hi there

    The formula of compounded continuously is

    A=pe^rt

    A future value?

    P present value 1300

    E constant

    R interest rate 0.042

    T time 5years+9/12=5+9/12=5.75years

    So

    A=1,300*e^ (0.042*5.75)

    A=1,655.10 round your answer to get

    A=1655

    Good luck!
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