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How much would $500 invested at 4% interest compounded continuously be worth after 7 years? Round your answer to the nearest cent. A. $640.00 B. $648.71 C. $657.97 D. $661.55

How much would $500 invested at 4% interest compounded continuously be worth after 7 years? Round your answer to the nearest cent. A. $640.00 B. $648.71 C. $657.97 D. $661.55
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How much would $500 invested at 4% interest compounded continuously be worth after 7 years? Round your answer to the nearest cent.

A. $640.00
B. $648.71
C. $657.97
D. $661.55

asked
User Bjarn Bronsveld
by
7.8k points

1 Answer

3 votes
The answer is D. $661.55

A = P * eᵃˣ
A - the future value
P - the principal
a - the rate
x - the period of time

We know:
A = ?
P = $500
a = 4% = 4%/100% = 0.04
x = 7

A = P * eᵃˣ
A = 500 * e⁰.⁰⁴*⁷
A = 661.55
answered
User Musecz
by
8.6k points
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