Question

Use continuous compound interest to compute the value of an investment of​ $1,000 at the end of 7 years at an annual rate of​ 9% (expressed in​ decimals), compounded continuously.

A. ​$1877.51

B. ​$1877.61

C. ​$1877.91

D. ​$1877.41

Answer 1

B. ​$1877.61

Future Value of Investment	=	Investment	*	Future Value of investment of 1
	=	$ 1,000.00	*	1.87761
	=	$ 1,877.61
Working:
Future Value of investment of 1	=	e^(r*t)		Where,
	=	2.71828^(0.09*7)	e	=	Mathmatical constant	=	2.71828
	=	1.8776098		r	=	Interest rate	=	9%
				t	=	Time	=	7