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If $396 is invested at an interest rate of 13% per year and is compounded continuously, how much will the investment be worth in 3 years? (A, right?)


$584.88

$583.66

$581.27

$268.11

Respuesta :

apologiabiology
yay

continously


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

A=future amount
P=princiapl=invested
r=rate in decimal
t=time in years

so

given P=396
r=13%=0.13
t=3

[tex]A=396e^{(0.13)(3)}[/tex]
[tex]A=396e^{0.39}[/tex]
use calculator
A=$584.88

answer is first option
ya, you aer right
calculista

Answer:

[tex]\$584.88[/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=3\ years\\ P=\$396\\ r=0.13[/tex]  

substitute in the formula above  

[tex]A=\$396(e)^{0.13*3}=\$584.88[/tex]