Question

How much would $150 invested at 8% interest compounded continuously beworth after 17 years? Round your answer to the nearest cent.

Answer 1

Answer: A. $584.43

Explanation

Given

$A(t)=P\cdot e^{rt}$

where A(t) is the amount obtained, P is the initial amount, e is a mathematical constant, r is the rate, and t is the time.

Thus, we are also given that:

• P = $150

,

• r = 8% = 0.08

,

• t = 17

Therefore, replacing the values:

$A(17)=150\cdot e^{0.08(17)}$$A(17)=150\cdot e^{1.36}$$A(17)\approx584.43$