How much will $100 grow to if invested at a continuously compounded interest rate of 12% for 7 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Future Value =
How much will $100 grow to if invested at a continuously compounded interest rate of 7% for 12 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Future Value =
| a. | Future Value | = | P | * | e | ^ | (r*t) |
| = | $100.00 | * | 2.71828 | ^ | (0.12*7) | ||
| = | $100.00 | * | 2.31637 | ||||
| = | $231.64 | ||||||
| Working: | |||||||
| P | = | Investment amount | = | $100.00 | |||
| e | = | Mathematical constant | = | 2.71828 | |||
| r | = | rate | = | 12% | |||
| t | = | time | = | 7 | |||
| b. | Future Value | = | P | * | e | ^ | (r*t) |
| = | $100.00 | * | 2.71828 | ^ | (0.07*12) | ||
| = | $100.00 | * | 2.31637 | ||||
| = | $231.64 | ||||||
| Working: | |||||||
| P | = | Investment amount | = | $100.00 | |||
| e | = | Mathematical constant | = | 2.71828 | |||
| r | = | rate | = | 7% | |||
| t | = | time | = | 12 |
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