How much would $400 invested at 9% interest compounded continuously be worth after 3 years? round your answer to the nearest cent.
a(t)=p*e^rt
a. $523.97 b. $475.73 c. $508.00 d. $406.60

Answer A:  $523.97

Step-by-step explanation:

Here the principal, P, would be $400; the annual interest rate would be 9%, or 0.09 as a decimal fraction; the elapsed time would be 3 years; and the compound amount is to be calculated using the formula A(t)=P*e^rt.

Then A = $400e^(0.09)^3, or

         A = $400)(1.309) = $523.986, or $523.99  The initial $400 principal would have grown to $523.97 (Answer A is closest).

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