156k views
0 votes
You invest $1,200 that is compounded continuously at 9% for 10 years. What is the equation you use?

User Gtosto
by
6.7k points

1 Answer

1 vote

Answer:

FV = $1,200 * e^(0.09*10)

Explanation:

The equation used to calculate the future value of an investment compounded continuously is:

FV = PV * e^(r*t)

where:

FV = future value

PV = present value (initial investment) = $1,200

r = annual interest rate (9% = 0.09)

t = number of years (10 years)

So, the future value of the investment would be:

FV = $1,200 * e^(0.09*10)

User Thelema
by
7.5k points