Question

Find the value of an investment of $15,000 for 13 years at an annual interest rate of 4.55% compounded continuously.

Answer 1

Answer:

A = $27100.5

Step-by-step explanation:

We are given;

Principal: P = $15,000

Interest rate: r = 4.55% = 0.0455

Time in years: t = 13 years

The formula for the value of the investment after t years of continuous compounding is;

A = P(e^(rt))

A = 15000(e^(0.0455 × 13))

A = 15000 × 1.8067

A = $27100.5