Question

# a. Compute the future value of \$1,900 continuously compounded for 7 years at an annual percentage...

a. Compute the future value of \$1,900 continuously compounded for 7 years at an annual percentage rate of 9 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Compute the future value of \$1,900 continuously compounded for 5 years at an annual percentage rate of 13 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Compute the future value of \$1,900 continuously compounded for 9 years at an annual percentage rate of 4 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. Compute the future value of \$1,900 continuously compounded for 7 years at an annual percentage rate of 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Calculation for future value compounded continously

Future value = Pe^rt

a. Future value = \$1,900e^0.09*7

= \$1,900e^0.63

= \$1,900*1.87767

= \$3,567.57

b.Future value =\$1,900e^0.13*5

= \$1,900e^0.65

= \$1,900*1.91560

= \$ 3,639.64

c. Future value = \$1,900e^0.04*9

= \$1,900e^0.36

= \$1,900*1.43337

= \$2,723.40

d. Future value = \$1,900e^0.06*7

= \$1,900e^0.42

= \$ 1,900*1.522011

= \$ 2,891.82

Working notes

'^' represent to 'power'

'*' represent to 'multiply'

Claculation for e

Multiply e's power with 0.00024417206 , then add 1 and then (*)(=) 12 times.

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