SOLUTION: Valerie invests $100,000 in a CD earning 1.5% annual interest. If the CD matures in 5 years what will be its value if interest is compounded continously

SOLUTION: Valerie invests $100,000 in a CD earning 1.5% annual interest. If the CD matures in 5 years what will be its value if interest is compounded continously

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Question 1030223: Valerie invests $100,000 in a CD earning 1.5% annual interest. If the CD matures in 5 years what will be its value if interest is compounded continously
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
In continuous compounding we get to use one of the constants in math, this one identified by the letter e:
A = Pe^(rt)
A = 100,000(2.7183^0.075)
A = 100,000*1.077885
A = 107,788.50
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