If $190 is invested at an interest rate of 11% per year and is compounded continuously, how much will the investment be worth in 4 years? Use the continuous compound interest formula: A = Pert
Accepted Solution
A:
Answer:$295.01Step-by-step explanation:Using the compounding continuously formula, we are looking for A. We have that P = 190; r = .11 (always use the decimal form of the rate!); and t = 4. Filling in we have:[tex]A=190e^{(.11)(4)}[/tex]Simplifying that multiplication:[tex]A=190e^{.44}[/tex].On your calculator, raise e to the .44 power to getA = 190(1.552707219) andA = $295.01