Question

use the compound interest formulas A=P(1+r/n)^nt and A=Pe^rt to solve. find the accumulated value of an investment of $8000 at 11% compounded continuously for 3 years

Answer 1

$11,127.75

Explanation:

You want to use the compound interest formula A=Pe^rt to find the value of an $8000 investment compounded continuously at 11% for 3 years.

Value

Put the values of the variables into the formula and do the arithmetic.

A = $8000·e^(0.11·3) ≈ $11127.75

The accumulated value after 3 years will be $11,127.75.