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The capital value$6507.63
Step-by-step explanation:
When an amount is compounded continuously interest it means the principal is continuously earning interest and the interest keeps earning on the interest earned. The formula to apply is;
where P is the starting amount, r is the nominal annual interest rate, t is length of time the interest is applied, and e=2.71828
Given that, A=$6000, e=2.71828, r=0.05 and t=1
A=6307.63
Interest earned= 6307.63-6000 = $307.63
Where the investment increases linearly and at a constant rate of $200 a per , the linear model will be;
A=6000+200t where t is length of time the interest is applied, and A is the amount after t period of time
In this case t=1
A=6000+200*1
A=6000+200 =6200
Interest earned is= $6200-$6000=$200
Capital value = $6000+$307.63+$200 =$6507.63
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Interest compounded continuously:brainly.com/question/13009340
Keywords : capital value, investment, increases linearly, continuously rate
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