How much would $600 invested at 8% interest compounded continuously be worth after 3 years? A.) $771.14 B.) $744.00 C ) $755.83 D.) 762.73
Mathematics · Middle School · Sun Jan 24 2021
Answered on
Given:
Principal Amount ( P ) = $600
Interes Rate ( r ) = 8% or 0.08 ( divide by 100)
Term ( t ) = 3
Compounded continuously ( n ) = 1
Formula for Compound Interest:
A = P ( 1 + r/n)^nt
A = Future value
Solution:
Substitute the given values of P, r, n and t to the formula for the compound interest.
A = $600 ( 1 + 0.08/1)^(3)(1)
A = $600 ( 1.08)^3
A = $600 ( 1.08 )^3
A = $600 (1.258712)
A = $755.8272
Final answer:
C ) $755.83