Question

CHOOSE 6 or 7 6Or 7ALL PARTS MUST BE ANSWERED

Answer 1

6)

Given:

The revenue amount, P = $ 16,000.

The period of time, t= 10 years.

The growth rate, r = 5% = 0.05.

Compounded continuously.

Required:

We need to find the future value.

Step-by-step explanation:

Consider the formula to find the amount by compound continuous.

`A=Pe^(rt)`

Substitute P=16000, r =0.05 and t=10 in the formula to find the future value.

`A=16000e^((0.05)*10)`

`A=26379.5403312`

Rounded to the nearest cent.

`A=26379.54\text{ dollars}`

Final answer:

`Future\text{ value\lparen exact value\rparen}=26379.5403312\text{ dollars.}`

`Future\text{ value}=26379.54\text{ dollars}`