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Answered

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If $396 is invested at an interest rate of 13% per year and is compounded continuously, how much will the investment be worth in 3 years?

Sagot :

nislam1130
so
396*0.13=51.48
51.48*3=154.44x100
154.44 divided by 100 100% because % so u need to put100%
154.44/100=1.5444
so the answer is 1.5444


                     hope it's the best answer
calculista

Answer:

[tex]\$584.88[/tex]  

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest  is equal to

[tex]A=P(e)^{rt}[/tex]  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal


t is Number of Time Periods  

e is the mathematical constant number

we have  

[tex]t=3\ years\\ P=\$396\\ r=0.13[/tex]  

substitute in the formula above  

[tex]A=\$396(e)^{0.13*3}=\$584.88[/tex]  


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