Consider an investment where $48,000 is invested for 10 years at 6% compounded continuously.
How much will this investment be worth after 10 years? (Round your answer to the nearest cent.)
$
What is the total amount earned in compound interest? (Round your answer to the nearest cent.)

You want the value of a $48,000 investment earning 6% interest compounded continuously for 10 years, and the amount of interest earned.

Continuous compounding

The value of an investment of P earning interest at rate r compounded continuously for t years is ...

A = Pe^(rt)

The value of the account will be ...

A = $48,000·e^(0.06·10) ≈ $87,461.70

The investment will be worth $87,461.70 after 10 years.

Interest

The interest earned is the difference between the account value and the original investment:

I = A -P

I = $87,461.70 -48,000 = $39,461.70

The total interest earned is $39,461.70.

Consider an investment where $48,000 is invested for 10 years at 6% compounded continuously. How much will this investment be worth after 10 years? (Round your answer to the nearest cent.) $ What is the total amount earned in compound interest? (Round your answer to the nearest cent.)

Respuesta :

Continuous compounding

Interest

Otras preguntas

Consider an investment where $48,000 is invested for 10 years at 6% compounded continuously.
How much will this investment be worth after 10 years? (Round your answer to the nearest cent.)
$
What is the total amount earned in compound interest? (Round your answer to the nearest cent.)