Question

An investment of $80,600 earns 7.6% annual interest, compounded continuously. If no funds are added or removed from this account, what is the future value of the investment after 15 years? (Round your answer to the nearest cent.)Future Value = $

Answer 1

Given: P(principle value) = 80600 dollars

Interest (r) = 7.6 % = 7.6/100 = 0.076

t = 15 years

To find:

Future value(FV) = ?

Step-by-step explanation:

continuous compound interest formula is given by

`FV=Pe^(rt)`

where, e ≈ 2.7183

`FV=80600*e^((0.076)(15))=80600*e^(1.14)=80600*3.127=252036.2`

future value = 252036.2 dollars ≈ 252036 dollars

Final answer:

the balance after 15 years is approximately 252036 dollars