Question

If $315 is invested at an interest rate of 3% per year and is compounded continuously, how much will the investment be worth in 9 years? Use the continuous compound interest formula: A = Pert. $206. 23 $412. 64 $2,343. 56 $4,687. 11.

Answer 1

Continuously compounded interest (CCI) indicates that an account balance is always generating interest while also refeeding that interest back into the balance, causing it to earn interest as well.

In 9 years, the investment will be worth $412.64.

The formula for calculating compounded interest is as follows:

$A = P(e)^{rt}$

where;

A = The final investment value.

P = The principal amount of money to be invested.

r = Decimal interest rate

t = The number of time periods.

e = Number of mathematical constants

$t = 9\text{ years}\\\\ P = 315 \text{ dollars}\\\\ r = 0.03$

We now have substituted or replaced in the preceding formula:

$A = 315(e)^{0.03*9} \\\\\\ A = 315(e)^{0.27} \\\\ A = 412.64$

Therefore, the investment will be worth $412.64 in 9 years by using the Continuous Compound Interest (CCI) Formula.

For more information about CCI, refer below:

https://brainly.com/question/26118456