Question

How much will $100 grow to if invested at a continuously
compounded interest rate of 7.5% for 7 years? **(Do not round
intermediate calculations. Round your answer to 2 decimal
places.)**

How much will $100 grow to if invested at a continuously
compounded interest rate of 7% for 7.5 years? **(Do
not round intermediate calculation**

Answer #1

Answer a.

Amount Invested = $100

Interest Rate = 7.50%

Time Period = 7 years

Accumulated Value = $100 * exp(Interest Rate * Time
Period)

Accumulated Value = $100 * exp(0.0750 * 7)

Accumulated Value = $100 * 1.6905

Accumulated Value = $169.05

Answer b.

Amount Invested = $100

Interest Rate = 7.00%

Time Period = 7.50 years

Accumulated Value = $100 * exp(Interest Rate * Time
Period)

Accumulated Value = $100 * exp(0.07 * 7.50)

Accumulated Value = $100 * 1.6905

Accumulated Value = $169.05

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Answer:

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