contestada

How much would $300 invested at 9% interest compounded continuously be worth after 3 years? Round your answer to the nearest cent. A.$306.11B.$381.00C.$364.18D.$392.98

How much would 300 invested at 9 interest compounded continuously be worth after 3 years Round your answer to the nearest cent A30611B38100C36418D39298 class=

Respuesta :

ANSWER :

D. $392.98

EXPLANATION :

Recall the compounded continuously formula :

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

Where A = future value

P = present value ($300)

e = Euler's number

r = rate of interest (9% or 0.09)

t = time in years (3 years)

Using the formula above :

[tex]\begin{gathered} A=300e^{0.09(3)} \\ A=392.98 \end{gathered}[/tex]