Question

What is the total amount for an investment of $1000 invested at 7.25% for 15 years and compound continuously?

Answer 1

`\$2,966.85`

Explanation:

we know that

The formula to calculate continuously compounded interest is equal to

`A=P(e)^(rt)`

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

`t=15\ years\\ P=\$1,000\\ r=0.0725`

substitute in the formula above

`A=\$1,000(e)^(0.0725*15)=\$2,966.85`