SOLUTION: how much money would you have in 5 years if today you invested $500 in a continuously compounded account at a rate of 3.75%? what about after 10 years? 20 years? 40 years?

Question 1153508: how much money would you have in 5 years if today you invested $500 in a continuously compounded account at a rate of 3.75%? what about after 10 years? 20 years? 40 years?
Answer by ikleyn(52776) (Show Source): You can put this solution on YOUR website!
.


One year growth factor is


    f =  =  = 1.038212.



So, 5 years future value is   = 603.16 dollars;


    10 years future value is   = 727.50 dollars;


    20 years future value is   = 1058.50 dollars;


    40 years future value is   = 2240.85 dollars.

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