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What is the future value of $1500 invested for 8 years at a continuously

compounding rate of 9% ?

1 Answer

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The formula for continuously compounded interest is:

A = Pe^(rt)

where A is the ending amount, P is the principal (starting amount), e is the mathematical constant approximately equal to 2.71828, r is the interest rate, and t is the time in years.

Using this formula, we can find the future value of $1500 invested for 8 years at a continuously compounding rate of 9%:

A = 1500e^(0.09*8)
A = 1500e^(0.72)
A = 1500*2.054
A = $3079.35

Therefore, the future value of $1500 invested for 8 years at a continuously compounding rate of 9% is approximately $3,079.35.
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