Question

Rochelle deposits $5,000 in an IRA. What will be the value (in dollars) of her investment in 15 years if the investment is earning 7% per year and is compounded continuously? (Simplify your answer completely. Round your answer to the nearest cent.)

Answer 1

$80.438.11

Explanation:

the formula for calculating future value when there is continuous compounding is : A x e^r x N A= amount e = 2.7182818 N = number of years r = interest rate

$5,000 x (2.7182818 ^0.07) x 15 = $80.438.11