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Aryanna invests $30,000 today into an investment that earns 5% annually, but interest is compounded continuously. What is the future value of this investment 15 years from today

1 Answer

5 votes

Answer:

Future Value =$62,367.85

Step-by-step explanation:

The rate of return earned on the investment can be worked out using the Future value of a lump sum formula. The future value of a lump sum is the amount lump would amount to if interest is earned and compounded at a certain interest rate.

The formula is FV = PV × (1+r)^(n)

PV = Present Value- 30,000

FV - Future Value, - ?

n- number of years- 15

r- interest rate - 5%

Future Value = 30,000× 1.05^15 =62,367.85

Future Value =$62,367.85

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