Use Compound Interest Formulas
Use the compound interest formulas A $$A = P \left( 1 + \frac { r } { n } \right) \text { and } A = P e ^ { r t } \text { to solve }$$
-Find the accumulated value of an investment of $6000 at 7% compounded continuously for 5 years.
A)$8514.41
B)$8614.41
C)$8415.31
D)$8100.00

Question

Quizplus · Accepted Answer

The formula for continuous compounding is $A = Pe^{rt}$, where $P = 6000$, $r = 0.07$, and $t = 5$. Substituting these values gives $A = 6000e^{0.07 \times 5} = 6000e^{0.35}$. Calculating this gives approximately $8514.41.

Use Compound Interest Formulas Use the Compound Interest Formulas A A =

Use Compound Interest Formulas
Use the Compound Interest Formulas A A =