SOLUTION: What is the total amount for an investment of $100 invested at 3.5% for 8 years and compounded continuously?

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Question 612964: What is the total amount for an investment of $100 invested at 3.5% for 8 years and compounded continuously?
Found 2 solutions by jim_thompson5910, ewatrrr:
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!

A=Pe%5E%28rt%29 Start with the continuous compounding formula.


A=100%2Ae%5E%280.035%2A8%29 Plug in P=100, r=0.035 (the decimal equivalent of 3.5%), and t=8.


A=100%2Ae%5E%280.28%29 Multiply 0.035 and 8 to get 0.28.


A=100%2A1.32312981233744 Raise 'e' (which is approximately 2.71828) to the power 0.28 to get 1.32312981233744 (this value is approximate).


A=132.312981233744 Multiply 100 and 1.32312981233744 to get 132.312981233744.


A=132.31 Round to the nearest hundredth (ie to the nearest penny).


So the answer is $132.31

Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

 total amount for an investment of $100 invested at 3.5% for 8 years and compounded continuously? 

 A = 100%2Ae%5E%28.035%2A8%29 = $132.31