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Suppose an investment earns 3.4% interest compounded continuously. find the future value of a $2000 investment after 11 years. round your answer to the nearest cent, if necessary.

User Tim Bellis
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Final answer:

To find the future value of a $2000 investment after 11 years with 3.4% interest compounded continuously, use the formula FV = P * e^(rt). The future value is approximately $2600.41.

Step-by-step explanation:

To find the future value of a $2000 investment after 11 years with 3.4% interest compounded continuously, we can use the formula:

FV = P * e^(rt)

Where FV is the future value, P is the principal (initial investment), e is Euler's number (approximately 2.71828), r is the interest rate, and t is the time in years.

Plugging in the values, we get:

FV = 2000 * e^(0.034 * 11)

Using a calculator to evaluate the expression, we find that the future value of the investment is approximately $2600.41 when rounded to the nearest cent.

User Vijaya Pandey
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