Find the amount accumulated after investing a principal P for t years at an interest rate r.
-P = $800, t = 4, r = 1% compounded continuously
A) $832.65
B) $1027.22
C) $43,678.52
D) $1116.49

Question

Quizplus · Accepted Answer

The formula for continuous compounding is $A = Pe^{rt}$, where $A$ is the amount, $P$ is the principal, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Plugging in the given values: $A = 800e^{0.01*4} = 800e^{0.04} \approx \$832.65$.

Find the Amount Accumulated After Investing a Principal P for T