How much would $500 invested at 3% interest compounded continuously be worth after 6 years? Round your answer to the nearest cent.

Respuesta :

You are given the equation 

A(t) = P*e^(rt) 

Where P = Principal 
r = interest rate 
t = time 

e is a mathematical constant equivalent to approx 2.71828 

You're told the initial Principal is $500, the interest rate is 3%, over 6 years. So you have everything that you need to solve the problem, just plug in the values and solve for A(6) 

A(t) = P*e^(rt) 
A(6) = 500 * e^(0.03 * 6) 
A(6) = 500 * e^(0.18) 
A(6) = 500 * 2.71828^(0.18) 
A(6) = 500 * 1.19721 
A(6) = 598.60861 

So $500 invested 6 years ago at 3% would be worth $598.61 today.

Answer:

598.60 is the right answer

Step-by-step explanation: