What is the future value after 12 years if you deposit 1, 000 for your child's education and the interest is guaranteed at 1.6% compounded continuously?

Solution

Solution

Amount : 1211.67

Solution steps

Translate the problem into an equation:

A = 1000 e^{0.016 \cdot 12}

1000 e^{0.016 \cdot 12} = 1211.67051 \dots

Round to the nearest hundredth:

1211.67

Amount : 1211.67

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