Question

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?

Answer 1

the investment after 10 years would be 856

Answer 2

Answer:

$ 958.10

Step-by-step explanation:

Given that

Initial investment P=$ 535

Need to find future worth A=?

Interest rate= 6%

time n= 10 yr

We know that formula for compound interest

$A=P\left ( 1+\dfrac{r}{100} \right )^n$

Now by putting the values

$A= 535\left ( 1+\dfrac{6}{100} \right )^{10}$

A=$ 958.10

So the investor will get $ 958.10 in 10 years.