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 0
RuslanHeatt 3 years 2021-08-05T18:06:59+00:00 2 Answers 19 views 0

Answers ( )

  1. minhkhoi
    0
    2021-08-05T18:08:14+00:00
    Reply

    Step-by-step explanation:

    P(t) = P0 * e^rt

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

  2. niczorrrr
    0
    2021-08-05T18:08:15+00:00
    Reply

    Answer:

    D

    Step-by-step explanation:

    Continuous compound is given by the following formula:

    A=Pe^{rt}

    Where A is the ending amount, P is the initial amount, e is Euler’s number, r is the rate, and t is the time in years.

    We have a $5000 investment at 4% or 0.04 for 18 years. Therefore:

    A=5000e^{(0.04)(18)}

    Use a calculator:

    A\approx\$ 10272.17

    Hence, our answer is D.

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