Answered

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?


$1307.12

$974.83

$973.38

$403.43

Verified Answer :

A = Pe^rt , e = 2.718

A = 535 (2.718)^(10 0.06)
A = 974.83

answer is $974.83

Compound Interest can be defined as the interest that is accumulated on a particular sum of money or investment after a given period of time.

The investment will be worth $974.83 in 10 years.

The formula to solve for the amount an investment will be worth if it is compounded continuously is given as:

A = Pe^rt

P = Principal = $535

R = Interest rate = 10%

T = Time in years = 10 years

First, convert R as a percent to r as a decimal

r = R/100

r = 6/100

r = 0.06 rate per year,


Then solve the equation for A

A = Pe^rt

A = 535(2.71828)^(0.06 x10)

A = $974.83

Therefore, the investment will be worth $974.83 in 10 years.

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https://brainly.com/question/24793452

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