Question

Suppose you invest $950 at an annual interest rate of 6.5% compounded continuously. How much will you have in the account after 10 years? Round the solution to the nearest dollar

Answer 1

present value, P = 950
interest rate, i = 6.5% continuous
Number of periods, n = 10 years

Future value

`F=Pe^(it)`

`=950e^(.065*10)`

`=1819.76` to the nearest cent