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How much would $700 be worth after 8 years, if it were invested at 5%interest compounded continuously? (Use the formula below and round youranswer to the nearest cent.)

How much would 700 be worth after 8 years if it were invested at 5interest compounded continuously Use the formula below and round youranswer to the nearest cen class=

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ANSWER :

D. $1044.28

EXPLANATION :

From the problem, the present value is P = $700, the interest rate is r = 5% or 0.05, and the time is t = 8 years

Using the given formula :

[tex]A(t)=Pe^{rt}[/tex]

Then :

[tex]\begin{gathered} A(t)=700e^{0.05(8)} \\ A(t)=1044.28 \end{gathered}[/tex]

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