Question

question 5 (multiple choice worth 1 points) (05.01r mc) if $396 is invested at an interest rate of 13% per year and is compounded continuously, how much will the investment be worth in 3 years? use the continuous compound interest formula: $a = pe^{rt}$ $584.88 $583.66 $581.27 $268.11

Explanation:

Step1: Identify given values

$P = 396$, $r = 0.13$, $t = 3$

Step2: Calculate exponent $rt$

$rt = 0.13 \times 3 = 0.39$

Step3: Compute $e^{rt}$

$e^{0.39} \approx 1.47698$

Step4: Calculate final amount $A$

$A = 396 \times 1.47698$

Answer:

$584.88$ (matches the first option: $584.88$)