The compound amount when an investment is compounded continuously is A = Peni Where A = compound amount, P = original principal, n = number of years, and i = interest rate per year. Let P = 1000, I = 0.1, and n = 5, then find A.
A)$13,189.77
B)$3297.44
C)$6594.89
D)$1,648.72

Question

Quizplus · Accepted Answer

The formula for continuous compounding is A = Pe^(i*n). Substituting the given values: A = 1000 * e^(0.1*5) = 1000 * e^0.5 ≈ 1648.72.

The Compound Amount When an Investment Is Compounded Continuously Is