Use the compound interest formulas A $$A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$$
-Find the accumulated value of an investment of $6000 at 8% compounded continuously for 4 years.
A) $8262.77
B) $8362.77
C) $8162.93
D) $7920.00

Question

Quizplus · Accepted Answer

Using the formula for continuous compounding, $ A = Pe^{rt} $, where $ P = 6000 $, $ r = 0.08 $, and $ t = 4 $, we calculate $ A = 6000 \times e^{0.32} \approx 8262.77 $.

Use the Compound Interest Formulas A A=P(1+rn)nt and A=Pert to solve. A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }A=P(1+nr​)nt and A=Pert to solve.

Use the Compound Interest Formulas A $A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$