briannaodell27
briannaodell27 briannaodell27
  • 11-07-2016
  • Mathematics
contestada

if 5000000 invested at 4% interest compounded continuously how much will the investment be worth in 30 years

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apologiabiology
apologiabiology apologiabiology
  • 11-07-2016
for this you use A=Pe^(rt)
A=furutre amount
P=present amount
e=natural base
r=rate in decimal
t=times in years

A=?
P=5000000
r=0.04
t=30

A=5,000,000e^(0.04*30)
A=5,000,000e^(1.2)
A=16600584.613683
Answer Link
toporc
toporc toporc
  • 11-07-2016
The required formula is:
[tex]A=Pe^{rt}[/tex]
where A is the amount after t years, e is the exponential number and r is the annual interest rate expressed as a decimal:
Plugging in the given values into the formula:
[tex]A=5000000\times e^{(0.04\times 30)}=16,600,584.61\ currency\ units[/tex]
Answer Link

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