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570 is invested at an interest rate of 4% per year and is compounded cont continuously, how much will the investment be worth in 10

Problemas

570 is invested at an interest rate of 4% per year and is compounded cont continuously, how much will the investment be worth in 10 years? Use the continuous compound Interest formula: A=Pe^rt. 593.26 655.66 726.74 850.34

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Gabriel veterano · Tutor durante 12 años
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Respuesta

To find the value of the investment after 10 years, we can use the continuous compound interest formula: where:- is the amount of money accumulated after n years, including interest.- is the principal amount (the initial amount of money).- is the annual interest rate (in decimal).- is the time the money is invested for in years.- is the base of the natural logarithm, approximately equal to 2.71828.Given:- - yearsPlugging these values into the formula, we get: First, calculate the exponent: Next, find : Now multiply this by the principal amount: Therefore, the investment will be worth approximately \$853.66 in 10 years. The closest option to this value is: 850.34 \