Find the accumulated amount after 3 year(s) if $6,000 is invested at 8% compounded continuously.
A) $7,627.49
B) $7,591.91
C) $7,609.45
D) $7,621.42

Question

Quizplus · Accepted Answer

The formula for continuous compounding is:

A = Pe^(rt)

where:
A = accumulated amount
P = principal amount (initial investment)
e = Euler's number (approximately 2.71828)
r = annual interest rate
t = time (in years)

Substituting the given values:

A = 6000*e^(0.08*3)
A = 6000*e^(0.24)
A = 6000*1.2712491
A = $7,627.49

Therefore, the answer is A) $7,627.49.

Find the Accumulated Amount After 3 Year(s) If $6,000 Is