Question

a. Compute the future value of $2,500 continuously compounded for 5 years at an APR of 9 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Compute the future value of $2,500 continuously compounded for 6 years at an APR of 7 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Compute the future value of $2,500 continuously compounded for 9 years at an APR of 4 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. Compute the future value of $2,500 continuously compounded for 6 years at an APR of 10 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer 1

u9g

Step-by-step explanation:

Answer 2

a) $3920.78

b) $3804.90

c) $3583.32

d) $4555.30

Step-by-step explanation:

To find future value, use the formula below:

`A=P(e)^r^n`

where

A=future value

P=present value

r=rate of interest

n=time period.

e=2.71828

a)

`A=2500*(2.71828)^(^0^.^0^9^*^5^)`

=$2500*1.568312185

Future value =$3920.78

b)

`A=2500*(2.71828)^(^0^.^0^7^*^6^)`

=$2500 * 1.521961556

Future value =$3804.90

c)

`A=2500*(2.71828)^(^0^.^0^4^*^9^)`

=$2500 * 1.433329415

Future value =$3583.32

d)

`A=2500*(2.71828)^(^0^.^1^0^*^6^)`

=$2500 * 1.8221188

Future value =$4555.30