3.6 Continuous Compounding

Jasmine puts $4000 into an a savings account which offers 8% interest and compounds interests continuously for 3 years. Which expression could be typed into the calculator to see how much money Jasmine will have after 3 years?

• 4000(1+.08)³

• 4000e^(.08)(3)

• 4000(1+3)^.08

• 4000(1+.08/3)³⁽³⁾

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?

• $1,225,54
• $2,225.54
• $22,255.40
• $225.54

Mr. T invested $15,000 in an account that pays 5% interest compounding continuously, how much is in the account after 5 years? 

• $15,500.50
• $19,260.38
• $19,260.40
• $21,500.25

Compounded Continuously Invested $400 at a rate of 35% for 2 years.

• $520.07

• $805.50

• $460.11

• $7,643.74

James Harden's 6 year investment of $100,000 accrued 4.2% interest continuously.  About how much money does he expect to receive?

• $128,660
• $166,280
• $175,335
• $250,354

Hannah invested $4000.  How much money will she have in 15 years if the interest rate of 6% is being compounded continuously? 

• 9839.42
• 32412.71
• 9838.41
• 32412.72

How much money do you need to invest at 2.8% compounded continuously in order to have $25,500 at the end of 8 years? Round your answer to the nearest dollar

• $20,383

• $2,715

• $27,147

• $2,038