Question

ANSWER ANY YOU CHOOSEPICK 1 or more TO ANSWER ALL PARTS OF QUESTION MUST be answered

Answer 1

Given:

There is a revenue of $16000

The revenue will be invested for 10 years with a rate of 5%, compounded continuously

So, P = 16000

t = 10 years, r = 0.05

We will use the following formula:

`A=P*e^(rt)`

The exact value of the future will be as follows:

`\begin{gathered} 16000e^(0.05*10) \\ =16000e^(0.5) \end{gathered}`

And future value (rounded to the nearest cent) = 26379.54