How much would $500 invested at 5% interest compounded continuously be worth after 8 years? Round your answer to the nearest cent.

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asked Jan 2, 2019 127k views

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Sandipan Dey · Answer 1 · 2019-01-05T20:45:03+0000

I've answered the question in the photo, so you can visualise the question better as I've done it step-by-step. Hope this helps!

how much would $500 invested at 5% interest compounded continuously be worth after-example-1

Korakot · Answer 2 · 2019-01-09T03:42:03+0000

Use the formula for continuous compounding:

A = Ce^(r*t), where r is the annual interest rate as a decimal fraction.

Here,

A = $500*e^(0.05*8) = $745.91 (answer)

How much would $500 invested at 5% interest compounded continuously be worth after 8 years? Round your answer to the nearest cent.

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