MATH SOLVE

2 months ago

Q:
# If $945 is invested at an interest rate of 4% per year and is compounded continuously, how much will the investment be worth in 10 years?Use the continuous compound interest formula A = Pert.A. $947 B. $984C. $1,028D. $1,410

Accepted Solution

A:

Answer:Option D [tex]\$1,410[/tex] Step-by-step explanation:we know that
The formula to calculate continuously compounded interest is equal to
[tex]A=P(e)^{rt}[/tex] 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 [tex]t=10\ years\\ P=\$945\\ r=0.04[/tex] substitute in the formula above [tex]A=945(e)^{0.04*10}[/tex] [tex]A=945(e)^{0.4}[/tex] [tex]A=\$1,410[/tex]