SOLUTION: How much would $400 invested at -7% interest compounded continuously be worth after 2 years?

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Question 861130: How much would $400 invested at -7% interest compounded continuously be worth after 2 years?
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
I think you meant to say "positive 7% interest" (not negative).


A = P*e^(r*t)


A = 400*e^(0.07*2)


A = 460.109519543 ... Use a calculator here.


A = 460.11 ... Round to the nearest penny


So you'll have $460.11 in the account in 2 years.