Register
Fern invested $6400 into a continuously compounded account with an interest rate of 1.5%. After 10 years, how much is the account worth
92.7k views
5 votes
Fern invested $6400 into a continuously compounded account with an interest rate of 1.5%. After 10 years, how much is the account worth

User Thekindofme
by
3.3k points

1 Answer

4 votes

Answer:

FV= $7,435.74

Step-by-step explanation:

Giving the following information:

Initial investment= $6,400

Interest rate= 1.5%

Number of periods= 10 years

To calculate the value of the account in ten years, we need to use the following formula:

FV= PV*e^(i*n)

FV= 6,400*e^(0.015*10)

FV= $7,435.74

User Lunatix
by
2.8k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

3.3m questions

4.2m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
At first Rohan thought it was a good idea to offer a car repair pick-up service at his auto repair shop, but then he realized that most customers called Tow-It-Now Inc. and it would be difficult to match
A friend wants to borrow money from you. He states that he will pay you $4,100 every 6 months for 9 years with the first payment six months from today. The interest rate is an APR of 6.4 percent with semiannual
Link Copied!