MATH SOLVE

6 months ago

Q:
# How much would $600 be worth after 10 years, if it were invested at 4%interest compounded continuously? (Use the formula below and round youranswer to the nearest cent.)Aft) = Poet

Accepted Solution

A:

The worth after 10 years if it were invested at 4% interest compounded continuously is $ 895.094Solution:Given that $ 600 invested at 4 % interest compounded continously for 10 yearsTo find: total amount after 10 yearsThe compound interest formula for compounded continously is given as:[tex]A = p e^{rt}[/tex]Where "p" is the principal"r" is the rate of interest"t" is the number of yearsHere in this problem, p = 600[tex]r = 4 \% = \frac{4}{100} = 0.04[/tex]t = 10 yearsSubstituting the values in formula we get,[tex]A = 600 e^{0.04 \times 10}\\\\A = 600 e^{0.4}\\\\A = 600 \times 1.49182469764\\\\A = 895.094[/tex]Thus the worth after 10 years is $ 895.094