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?

Question

asked Mar 17, 2017 135k views

2 Answers

Jazel · Answer 1 · 2017-03-23T06:53:39+0000

Answer:

$ 958.10

Explanation:

Given that

Initial investment P=$ 535

Need to find future worth A=?

Interest rate= 6%

time n= 10 yr

We know that formula for compound interest

$A=P\left ( 1+(r)/(100) \right )^n$

Now by putting the values

$A= 535\left ( 1+(6)/(100) \right )^(10)$

A=$ 958.10

So the investor will get $ 958.10 in 10 years.