Answer:
[tex]\$635.62[/tex]
Step-by-step explanation:
The formula to calculate continuously compounded interest is equal to
[tex]A=P(e)^{rt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
e is the mathematical constant number
we have
[tex]t=3\ years\\ P=\$500\\ r=0.08[/tex]
substitute in the formula above
[tex]A=\$500(e)^{0.08*3}[/tex]
[tex]A=\$635.62[/tex]
