If $1,500 is invested at 9 percent compounded continuously,what is the balance after 13 years?
A)$4,598.71
B)$465.55
C)$1,635.00
D)$4,832.99

Question

Quizplus · Accepted Answer

The formula for continuous compounding is given by:

$$A = Pe^{rt}$$

where $A$ is the balance, $P$ is the principal, $r$ is the annual interest rate as a decimal, $t$ is the time in years, and $e$ is the constant $2.71828...$ (sometimes denoted by $E$).

Plugging in the given values, we get:

$$A = 1500e^{0.09(13)} \approx \boxed{4,832.99}$$

Therefore, the best choice is (D).

If $1,500 Is Invested at 9 Percent Compounded Continuously,what Is