MATH SOLVE

3 months ago

Q:
# If $740 is invested at an interest rate of 11% per year and is compounded continuously, how much will the investment be worth in 7 years?Use the continuous compound interest formula A = Pert.

Accepted Solution

A:

Answer:[tex]\$1,598.23[/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=7\ years\\ P=\$740\\ r=0.11[/tex] substitute in the formula above [tex]A=\$740(e)^{0.11*7}[/tex] [tex]A=\$1,598.23[/tex]