Respuesta :

Bladerunner1976
[tex]A(8) = 500*e^{0.05(8)}[/tex]
[tex]A(8) = 500*e^{0.40} \\ A(8) = 500 * 1.492 \\ A(8) = 745.91[/tex]
Louli
Answer:
A = $745.9 (to the nearest cent)

Explanation:
the formula of the continuous compound interest is given as:
A = P * e^(rt)
where:
A is the final amount we want to find
P is the amount invested = $500
r is the interest rate (expressed in decimal) = 5% = 0.05
t is the time in years = 8 years

Substitute with the givens in the above equation to get the amount after 8 years as follows:
A = P * e^(rt)
A = 500 * e^(0.05*8)
A = $745.9 (to the nearest cent)

Hope this helps :)

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