222k views
1 vote
Find the accumulated value of an investment of 8000 at 8% compounded continuously for 6 years.

a. $10,393.82
b. $10,000.00
c. $9,500.00
d. $9,212.82

User RobinGower
by
7.5k points

1 Answer

0 votes

Final answer:

The accumulated value of an investment of $8000 at 8% compounded continuously for 6 years is $10,393.82.

Step-by-step explanation:

To find the accumulated value of an investment with continuous compounding, we can use the formula: A = P*e^(rt), where A is the accumulated value, P is the principal amount, r is the interest rate, and t is the time in years.

In this case, the principal amount is $8000, the interest rate is 8%, and the time is 6 years. Plugging these values into the formula, we get:

A = 8000*e^(0.08*6)

Simplifying this equation, we find that the accumulated value is $10,393.82.

User List
by
8.8k points