A. Compute the future value of $1,900 continuously compounded for 7 years at a stated annual interest rate of 12 percent

A. Compute the future value of $1,900 continuously compounded for 7 years at a stated annual interest rate of 12 percent

B. Compute the future value of $1,900 continuously compounded for 5 years at a stated annual interest rate of 10 percent.

C. Compute the future value of $1,900 continuously compounded for 12 years at a stated annual interest rate of 5 percent.

D. Compute the future value of $1,900 continuously compounded for 10 years at a stated annual interest rate of 7 percent.

 

answer:

The formula to get future value of any amount which compounded continously for n Years at i% is given below.
Future Vaue = Present Value*(1+i)^n Where,
i = Interest rate
Thus, n = Years
A Future Vaue = 1900*(1+.12)^7 = $    4,200
B Future Vaue = 1900*(1+.10)^5 = $    3,060
C Future Vaue = 1900*(1+.05)^12 = $    3,412
D Future Vaue = 1900*(1+.07)^10 = $    3,738
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