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hram777 [196]
3 years ago
12

Find the value of an investment of $5000 at 7% compounded continuously for 6 years

Mathematics
1 answer:
Helga [31]3 years ago
8 0

Answer:

Option 4 is correct

Step-by-step explanation:

If the rate is compounded continuously, the formula used to find the future value is:

A= Pe^rt

Where A = Future Value

P= Principal amount

r = interest rate in decimal

t = time

For the given data:

A=?

P = $5000

r = 7% or 0.07

t = 6

Putting values in the above formula

A= 5000e^(0.07 *6)

A = 7609.81

So, Option 4 is correct.

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