Question

1.) how much will $5000 be worth in 5 years if it is compounded continuously at 3% interest.

2.) Becky invest $2500 at an annual interest rate of 9%. How much is the investment worth after 10 years if the interest is compounded continuously.

3.) suppose $2000 is invested at 5.75% annual interest compounded continuously for 21 months. How much will the investment be worth at the end of 21 months.


Will mark as Brainlessly or whatever it’s called (if you take my points I will report) thank you so much:)

Answer 1

$5809.17

$6149.01

$2211.72

Explanation:

Continous interest formula:

(pv)e^(rt)

we have

5000e^(5*.03)= 5809.17

Same equation from before

2500e^(.09*10)= 6149.01

2000e^(.0575*(21/12))

(we write 21/12 because that's how many years has passed)

= 2211.72