To solve this problem, we will use the formula for continuous compounding, which is A = P * e^(rt).

Here,
P = $100 (the principal amount),
r = 8% or 0.08 (the annual interest rate),
t = 15 years (the time the money is invested for).

Substituting these values into the formula, we get:

A = 100 * e^(0.08*15)

Now, calculate the exponent first:

0.08 * 15 = 1.2

So, the equation becomes:

A = 100 * e^1.2

Now, use the value of e (approximately 2.71828) and raise it to the power of 1.2. Then multiply the result by 100.

After performing these calculations, you get:

A ≈ $332.01

So, $100 invested at 8% interest compounded continuously would be worth approximately $332.01 after 15 years. Therefore, the answer is C.$332.01.

Question

To solve this problem, we will use the formula for continuous compounding, which is A = P * e^(rt).

Here, 
P = $100 (the principal amount), 
r = 8% or 0.08 (the annual interest rate), 
t = 15 years (the time the money is invested for).

Substituting these values into the formula, we get:

A = 100 * e^(0.08*15)

Now, calculate the exponent first:

0.08 * 15 = 1.2

So, the equation becomes:

A = 100 * e^1.2

Now, use the value of e (approximately 2.71828) and raise it to the power of 1.2. Then multiply the result by 100.

After performing these calculations, you get:

A ≈ $332.01

So, $100 invested at 8% interest compounded continuously would be worth approximately $332.01 after 15 years. Therefore, the answer is C.$332.01.

Knowee AI · Accepted Answer