Question

If $396 is invested at an interest rate of 13% per year and is compounded continuously, how much will the investment be worth in 3 years? (A, right?)
$584.88

$583.66

$581.27

$268.11

Answer 1

Answer:

$\ 584.88$  

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest  is equal to

$A=P(e)^{rt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

e is the mathematical constant number

we have  

$t=3\ years\\ P=\ 396\\ r=0.13$  

substitute in the formula above  

$A=\ 396(e)^{0.13*3}=\ 584.88$  

Answer 2

Yay

continously


$A=Pe^{rt}$

A=future amount
P=princiapl=invested
r=rate in decimal
t=time in years

so

given P=396
r=13%=0.13
t=3

$A=396e^{(0.13)(3)}$
$A=396e^{0.39}$
use calculator
A=$584.88

answer is first option
ya, you aer right