How much would $500 invested at 5% interest compounded continuously be worth after 8 years? round your answer to the nearest cent.

$741.91

Step-by-step explanation:

The formula for compounded continuously is given by

We have been given that,

P = $500

r = 5% = 0.05

t = 8 years

A = ?

Substituting these values in above written formula, we get

Simplifying the exponent

We can further simplify it as

Rounded this value to nearest cent

Hence, the amount will become $741.91 in 8 years.