How much would $125 invested at 8% interest compounded continuously be worth after 16 years?

How much would $125 invested at 8% interest compounded continuously be worth after 16 years? Round your answer to the nearest cent.

A(t) = P * e^rt


A. $367.26

B. $428.24

C. $449.58

D. $285.00


How much would $125 invested at 8% interest compounded continuously be worth after 16 years?


Plug all values into the equation to find your answer:




A(t) = 125e^(.08 * 16) = $449.58


The answer is C: $449.58


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How much would $100 invested at 8% interest compounded annually be worth after 15 years?

Rounding our answer to the nearest cent and using the compound interest formula: A = P(1 + i)^n, and considering the following:

• P is the initial principle, 
• i is the annual rate of interest expressed as a decimal fraction, and 
• n is the number of years. 

Assuming annual compounding, the easiest way to approach this involves logs.

Plug in your numbers.


A = 100(1.08)^15


Log(A) = Log(100) + 15Log(1.08)

Log(A) = 2 + 15(0.0334237555) = 2.50135633

A = 10^2.50135633 = 317.21691


or about $317.22

Answer: How much would $100 invested at 8% interest compounded annually be worth after 15 years? $317.22

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