Question

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.)

Answer 1

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.