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how much would $200 invested at 5% interest compounded continuously be worth after 9 years? round your answer to the nearest cent

A(t) = P(1+r/n)^nt

A. $207.63
B. $313.37
C. $363.82
D. $310.27

Respuesta :

Luv2Teach
The easier formula for continuously compounded interest is [tex]A(t)=Pe^{rt}[/tex] where A(t) is the amount after all the compounding is done, P is the initial investment, r is the interest rate expressed as a decimal, and t is the time in years.  Our formula then is filled in accordingly where P = 200, r = .05 and t = 9. [tex]A(t)=200e^{.05*9}[/tex]  and  [tex]A(t)=200e^{.45}[/tex].  e is Euler's number and there is a button on your calculator for it.  If you hit 2nd and the ln button you get "e^ " on your display.  Enter .45 as your exponent and then multiply that by 200.  That gives us a value of $313.67  (your answer is $313.37...did you type the choice incorrectly, maybe?)
Tundexi

The answer is closest to $313.37 (B)

The formula we will use is A = P*e^rt Where A is amount, P is principal, r is rate, n is the number of years and t is the compounded period.

Amount = ?, P = $200, R = 5%, T = 9

A = P*e^rt

A = $200 x e^(0.05*9)

A = $200 x e^(0.45)

A = $200 x 1.56831218549

A = 313.662437098

A = $313.67

Thus, the worth of the $200 invested after 9 years is $313.67.

Learn more about interest compounded here https://brainly.com/question/913541

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