Question

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.)

Answer 1

Answer:

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)