Question

What is the total amount for an investment of $1000 invested at 7.25% for 15 years and compound continuously?

Answer 1

Answer:

$\ 2,966.85$  

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest is equal to

$A=P(e)^{rt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest in decimal  

t is Number of Time Periods  

e is the mathematical constant number

we have  

$t=15\ years\\ P=\ 1,000\\ r=0.0725$  

substitute in the formula above  

$A=\ 1,000(e)^{0.0725*15}=\ 2,966.85$