Question

Find the value of an investment of $20,000 for 12 years at an annual interest rate of 3.85%

Answer 1

Answer:

$31,745

Step-by-step explanation:

Compound continuously:

FVn = PV x e^rn

where

PV = $20,000

r = 3.85%

n = 12 years

plugin values into the formula:

FV₁₂ = $20,000 x e ⁰°⁰³⁸⁵ ⁽¹²⁾

FV₁₂ = $31,745