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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?

Verified Answer :

nislam1130

so
3960.13=51.48
51.483=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:

\(\$584.88\)  

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest  is equal to

\(A=P(e)^{rt}\)  

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  

\(t=3\ years\\ P=\$396\\ r=0.13\)  

substitute in the formula above  

\(A=\$396(e)^{0.13*3}=\$584.88\)  


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