The worth after 10 years if it were invested at 4% interest compounded continuously is $ 895.094
Given that $ 600 invested at 4 % interest compounded continously for 10 years
To find: total amount after 10 years
The compound interest formula for compounded continously is given as:
[tex]A = p e^{rt}[/tex]
Where "p" is the principal
"r" is the rate of interest
"t" is the number of years
Here in this problem, p = 600
[tex]r = 4 \% = \frac{4}{100} = 0.04[/tex]
t = 10 years
Substituting the values in formula we get,
[tex]A = 600 e^{0.04 \times 10}\\\\A = 600 e^{0.4}\\\\A = 600 \times 1.49182469764\\\\A = 895.094[/tex]
Thus the worth after 10 years is $ 895.094
