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What is the future value of an investment of $2300 compounded continuously at 2% for 3 years?

a) $2,413.36
b) $2,357.19
c) $2,306.68
d) $2,267.49

User MelnikovI
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1 Answer

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The future value of the investment is $2.440.1

Compound interest is interest calculated on both the principal amount and accumulated interest from previous periods. It leads to exponential growth of the investment or debt over time.

The amount on compound interest is calculated as:

A = P( 1+r/100)ⁿ

where P is the principal and R is the rate, n is the number of years.

A = 2300( 1+ 2/100)³

A = 2300 ( 1+0.02)³

A = 2300( 1.02)³

A =$2.440.1

Therefore, the future value of the investment is $2.440.1

User Cerniuk
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