Question

PLEASE HELP ME!!!!!! THIS IS FOR AN EXAM REVIEW PLEASE HELP

If $250 is invested at an interest rate of 6% per year and is compounded continuously, how much will the investment be worth in 12 years? Use the continuous compound interest formula: A = Pert

Answer 1

6% of 250 is 15. So, if you add 15 to 250 you get 265. If you multiply 15 by 12, you will get 180. 180 + 250 = 430. So, your answer would be $430 in interest.