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

Here,
P = principal amount (the initial amount of money) = $600
r = annual interest rate (in decimal form) = 8% = 0.08
t = time the money is invested for (in years) = 3 years

Substituting these values into the formula, we get:

A = 600 * e^(0.08*3)

Now, calculate the exponent first:

0.08 * 3 = 0.24

So, the equation becomes:

A = 600 * e^0.24

Now, use the value of e (approximately equal to 2.71828) and raise it to the power of 0.24:

e^0.24 ≈ 1.27125

Now, multiply this result by 600 to find the total amount of money after 3 years:

A = 600 * 1.27125 ≈ $762.75

So, the closest answer is A. $762.73.

Question

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

Here, 
P = principal amount (the initial amount of money) = $600
r = annual interest rate (in decimal form) = 8% = 0.08
t = time the money is invested for (in years) = 3 years

Substituting these values into the formula, we get:

A = 600 * e^(0.08*3)

Now, calculate the exponent first:

0.08 * 3 = 0.24

So, the equation becomes:

A = 600 * e^0.24

Now, use the value of e (approximately equal to 2.71828) and raise it to the power of 0.24:

e^0.24 ≈ 1.27125

Now, multiply this result by 600 to find the total amount of money after 3 years:

A = 600 * 1.27125 ≈ $762.75

So, the closest answer is A. $762.73.

Knowee AI · Accepted Answer