Question

If $4,000,000 is invested at 5% interest compounded continuously, how much

will the investment be worth in 25 years?

Answer 1

Answer:$13,961,371.83

Explanation:

A P E X

Answer 2

The worth of investment after 25 years is $17545419.8 approximately.

Solution:

Given, If $4,000,000 is invested at 5% interest compounded continuously,

We have to find how much will the investment be worth in 25 years?

The formula for Compound interest is given as:

`\text { Compound interest }=\text { amount } *\left(1+\frac{\text { rate }}{100}\right)^( time )`

Substituting the values we get,

`\begin{array}{l}{=4000000 *\left(1+(5)/(100)\right)^(25)} \\\\ {=4000000 *(1.05)^(25)} \\\\ {=4000000 * 3.38635=13545419.7636}\end{array}`

Now, investment worth after 25 years = invested amount + compound interest

= 4000000 + 13545419.7636 = 17545419.7636

Hence, the worth of investment after 25 years is $17545419.8 approximately.