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for 5 years, a growing corporation places a continuous stream of $50,000 per year into an account which has a continuously compounding interest rate of 1.7%. what will be the value of this continuous stream at the end of 5 years? round your answer to the nearest integer. do not include a dollar sign or commas in your answer.'

User Mirdrack
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Final answer:

To find the value of the continuous stream at the end of 5 years with a continuously compounding interest rate of 1.7%, we can use the formula for compound interest.

Step-by-step explanation:

To find the value of the continuous stream at the end of 5 years, we can use the formula for compound interest:


A = P * e^(rt)


Where:


A = the future value

P = the initial investment ($50,000 per year)

r = the interest rate per period (1.7% per year)

t = the number of years

e = the mathematical constant approximately equal to 2.71828


Substituting the given values into the formula, we get:


A = 50,000 * e^(0.017 * 5)


A = 50,000 * e^(0.085)


A ≈ 50,000 * 1.0888999


A ≈ 54,444.99


Rounding to the nearest integer, the value of the continuous stream at the end of 5 years is approximately $54,445.

User Arviman
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