Question

7Use the compound interest formulas Aand A = Pert to solve. Find the accumulatedvalue of an investment of $4000 at 11% compounded continuously for 5 years.= Pp(1+.)"nO $6,915.66O $6,933.01O $6,928.99O $6,832.58

Answer 1

Given:

Value of an investment of $4000 at 11% compounded continuously for 5 years.

Required:

Find the accumulated value of an investment.

Step-by-step explanation:

We know that

`A=Pe^(rt)`

Where, P = Original principal sum

r = Nominal annual interest rate

t = length of time the interest is applied.

Now,

`\begin{gathered} A=4000* e^((0.11*5)) \\ A=6933.01 \end{gathered}`

Answer:

Hence, option b is correct.