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22 January, 09:54

Suppose you invest $500 at an annual interest rate of 7.1% compounded continuously. How much will you have in the account after 4 years? Round the solution to the nearest dollar.

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  1. 22 January, 10:12
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    Answer: You will have $664.22 after 4 years of continuous interest.

    To find the value of your investment using continuous interest, you have to use the equation: A = Pe^ (rt)

    Just plug in the values you know and evaluate:

    A = 500e^ (0.071x4)

    A = $664.22 is the amount of your account after 4 years.
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