Suppose an investment earns 2.5% interest compounded continuously. Find the future value of a 2300 investment after 24 years. Round your answer to the nearest cent, if necessary.

Solution

Solution

Amount : 4190.87

Solution steps

Translate the problem into an equation:

A = 2300 e^{0.025 \cdot 24}

2300 e^{0.025 \cdot 24} = 4190.87324 \dots

Round to the nearest hundredth:

4190.87

Amount : 4190.87

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