Aryanna invests $30,000 today into an investment that earns 5% annually, but interest is compounded continuously. What is the fu

Question

ololo11 [35]

3 years ago

11

Aryanna invests $30,000 today into an investment that earns 5% annually, but interest is compounded continuously. What is the fu

ture value of this investment 15 years from today

Business

1 answer:

yawa3891 [41] · Answer 1 · 2022-04-15T20:48:06+03:00

Answer:

Future Value =$62,367.85

Explanation:

<em>The rate of return earned on the investment can be worked out using the Future value of a lump sum formula. The future value of a lump sum is the amount lump would amount to if interest is earned and compounded at a certain interest rate. </em>

The formula is FV = PV × (1+r)^(n)

PV = Present Value- 30,000

FV - Future Value, - ?

n- number of years- 15

r- interest rate - 5%

Future Value = 30,000× 1.05^15 =62,367.85

Future Value =$62,367.85