Problema Solution

How much would $500 invested at 3% interest compounded continuously be worth after 6 years? Round your answer to the nearest cent. Do not include units in your answer.

Answer provided by our tutors

P = $500 the principle

r = 3% or 0.03

t = 8 years

A = the future value


A = Pe^(r*t)


A = 500*e^(0.03*8)


A = $635.62