How much would $500 invested at 5% interest compounded continuously be worth after 8 years? a: $700 b:$709.58 c:$745.88 d.$738.73

Question

asked Oct 19, 2022 49.2k views

1 Answer

Kiran Solkar · Answer 1 · 2022-10-26T01:43:50+0000

Answer:

D

Explanation:

We will need to use the compound interest formula:

A = P(1 + r)ⁿ

A = final amount

P = Initial amount

r = rate

n = time applied

Our equation will then look like this

A = 500(1.05)⁸

A = 738.72772