Question

If $535 is invested at an interest rate of 6% per year and is compounded continuously, how much will the investment be worth in 10 years?

Answer 1

The amount in compund interest will be given by A = Pe^rt where, P is the principal value i.e. $535, r is the rate i.e. 6% i.e r= 0.06and t is the time = 10 years. The, A = $535 * 1.82, or A = $974.83. Thus the investment will be equal to $535 after 10 years.