companyboy12
Answered

You invest $500 in an account with an annual interest rate of 1.1%, compounded continuously. How much money is in the account after 10 years? Round your answer to the nearest whole number.
A) $548

B) $558

B) $580

C) $600

Answer :

merlynthewhizz
The multiplier is given by 100% + 1.1% = 101.1% and as decimal is 1.011

The formula for compound growth is given
Final Value = Principal Amount × [tex](Multiplier)^{n} [/tex]
where n is the number of years

Final value = [tex]500 (1.011)^{10} [/tex]
Final value = 557.8039178 ≈ 558 (rounded to nearest whole number)

Correct answer: B

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