How much would 500 invested at 5 percent interest compounded continuously be worth after 4 years?

Answer 1

A = Pert where… A = amount after t years at r x 100% = to be determined P = principal; initial amount = $500 r = annual interest rate, as a decimal = 5% = 0.05 t = number of years = 4 A = $500 x e(0.05 x 4) A = $500 x e0.2 A = $500 x 1.221402758 A = $610.70 ANSWER