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?
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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):
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.
