Answer:
$13,961.37
Step-by-step explanation:
Periodic compounding: P(1 + r/n)^Yn for n equal to
Incidentally, if you know calculus then the continuous compounding formula has a natural interpretation. First let's replace the clunky "FV" notation, and write f(t) for the balance at time t (with t measured in years). So f(t) = Pe^tr
Taking the derivative
d/
dt
f(t) = d/dt
(Petr) = rPetr = r f(t)
In words, this is saying that
"at any instant the balance is changing at a rate that equals r times the current balance"
which of course is the definition of continuous compounding.
