What is the value of $10,000 invested for 1 year at 8% compounded continuously?
A) $10,800
B) $10,833
C) $10,824
D) $11,268

Name: What is the value of $10,000 invested for 1 year at 8% compounded continuously? A) $10,800 B) $10,833 C) $10,824 D) $11,268
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Question

Quizplus · Accepted Answer

The formula for continuous compounding is $A = Pe^{rt}$, where $P$ is the principal amount ($10,000), $r$ is the interest rate (0.08), and $t$ is the time in years (1). Plugging in these values gives $A = 10,000 	imes e^{0.08} \approx 10,833$.

What Is the Value of $10,000 Invested for 1 Year