How much would $400 invested at 9% interest compounded continuously be worth after 3 years? Round your answer to the nearest cent.

Question

contestada

Respuesta :

Anouxo Anouxo · Answer 1 · 2017-01-09T21:56:33+01:00

The formula to that equation:

A(t)=p *e^rt

P is the principle amount invested 400
R is the rate, 0.09 T is the 3 years.

Solve from there.

Answer Link

ApusApus ApusApus · Answer 2 · 2020-03-18T02:58:51+01:00

Answer:

$523.99

Step-by-step explanation:

We are asked to find the final amount amount that we will get after investing $400 at a rate of 9% interest compounded continuously after 3 years.

We will use compound interest formula to solve our given problem.

[tex]A=Pe^{rt}[/tex], where,

A = Final amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form.

[tex]9\%=\frac{9}{100}=0.09[/tex]

[tex]A=400e^{0.09(3)}[/tex]

[tex]A=400e^{0.27}[/tex]

[tex]A=400(1.3099644507332473)[/tex]

[tex]A=523.98578029329892[/tex]

[tex]A\approx 523.99[/tex]

Therefore, the amount will be worth $523.99 after 3 years.