Question

If $1000 is invested for x years at 12%, compounded continuously, the future value that results is

S = 1000e^0.12x

What amount will result in 4 years? (Round your answer to the nearest cent.)

Answer 1

Answer with explanation:

Amount =$ 1000

Time =x Years

Rate of Interest = 12 %

Value of Money after x years is given by

`=1000e^(0.12 x)`

Amount after 4 years is equal to

`=1000e^(0.12* 4)\\\\=1000 * e^(0.48)\\\\=1000 * (2.71828)^(0.48)\\\\=1000 * 1.61607388\\\\=1616.0739`

Answer 2

Answer:1616.07

Explanation:

Given

Principal=1000

Rate of interest =12

Time =4

`Amount =Pe^(0.12x)`

`A=1000e^(0.12\cdot 4)`

`A=1000* 1.61607`

A=1616.07