Question

Accumulated Amount of Money Flow  An investment is expected to yield a uniform continuous rate of money flow of $20,000 per year for 3 years. Find the accumulated amount at an interest rate of 4% compounded continuously.

Answer 1

Answer:

Amount after 3 years will be $22496

Step-by-step explanation:

We have given principal amount P = $20000

Rate of interest r = 4 %

Time period t = 3 years

We have to find the amount after 3 years

Amount is given by $A=P(1+\frac{r}{100})^n$

So $A=20000(1+\frac{4}{100})^3$

$A=20000\times (1.04)^3=20000\times 1.1248=22496$

So amount after 3 years will be $22496