An investment of 2,600.00 earns 1.7% annual interest, compounded continuously. If no funds are added or removed from this account, what is the future value of the investment after 24 years?

Solution

An investment of 2, 600.00 earns 1.7% annual interest, compounded continuously. If no funds are added or removed from this account, what is the future value of the investment after 24 years?

Solution

Amount : 3909.9

Solution steps

Translate the problem into an equation:

A = 2600 e^{0.017 \cdot 24}

2600 e^{0.017 \cdot 24} = 3909.89861 \dots

Round to the nearest hundredth:

3909.9

Amount : 3909.9

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