SOLUTION: An investment is made where 500 is deposited annually into an account that pays 9% interest ( compounded continuously) what is the total after 20 years
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Question 726453: An investment is made where 500 is deposited annually into an account that pays 9% interest ( compounded continuously) what is the total after 20 years
Answer by mbmodak(32) (Show Source): You can put this solution on YOUR website!
The formula for calculating compound Interest is
FV = PV × (1+r)^n
where FV = Future Value
PV = Present Value
r = annual interest rate
n = number of periods
Here
FV=500(1+0.09)^20 or FV =2802.21
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