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
Roztwór
Gabriel
veterano · Tutor durante 12 años
4.2
(189 Votos)
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
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