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## What is the value of a $5000 investment after 18 years, if it was invested at 4% interest compounded continuously? 1) $9,367.30<

Question

What is the value of a $5000 investment after 18 years, if it was invested at 4% interest

compounded continuously?

1) $9,367.30

2) $9,869.39

3) $10,129.08

4) $10,272.17

in progress
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Mathematics
3 years
2021-08-05T18:06:59+00:00
2021-08-05T18:06:59+00:00 2 Answers
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## Answers ( )

Step-by-step explanation:P(t) = P0 * e^rt

=> P(18) = $5000 * e^(0.04 * 18) = $10,272.17. (4)

Answer:D

Step-by-step explanation:Continuous compound is given by the following formula:

Where

Ais the ending amount,Pis the initial amount,eis Euler’s number,ris the rate, andtis the time in years.We have a $5000 investment at 4% or 0.04 for 18 years. Therefore:

Use a calculator:

Hence, our answer is D.