What is the total amount for an investment of $1000 invested at 7.25% for 15 years and compound continuously?

Question

What is the total amount for an investment of $1000 invested at 7.25% for 15 years and compound continuously?

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1 week 2021-11-25T02:11:05+00:00 1 Answer 0

Answers ( )

  1. Emma
    0
    2021-11-25T02:12:46+00:00

    Answer:

    \$2,966.85  

    Step-by-step explanation:

    we know that

    The formula to calculate continuously compounded interest is equal to

    A=P(e)^{rt}  

    where  

    A is the Final Investment Value  

    P is the Principal amount of money to be invested  

    r is the rate of interest in decimal  

    t is Number of Time Periods  

    e is the mathematical constant number

    we have  

    t=15\ years\\ P=\$1,000\\ r=0.0725  

    substitute in the formula above  

    A=\$1,000(e)^{0.0725*15}=\$2,966.85  

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