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Assume you invest $13,880 today for 9 years at a 4.1% continuously compounded rate of interest....

Assume you invest $13,880 today for 9 years at a 4.1% continuously compounded rate of interest.

How much money would you have at the end of the 9 years after the effects of compounding?

Solutions

Expert Solution

Formula for continuous compounding is

future value = present value *e^rt

where is e is math constant

r is rate = 4.1%

t is time = 9 years

fv = 13880*e^(0.041*9) = 20074.74

jeff jeffy answered 2 years ago
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