SOLUTION: An initial investment of $3,000 earns 7% interest compounded continuously. What will the investment be worth in 19 years? (Round your answer to the nearest cent.)

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Question 1179236: An initial investment of $3,000 earns 7% interest compounded continuously. What will the investment be worth in 19 years? (Round your answer to the nearest cent.)
Answer by ikleyn(52775) About Me  (Show Source):
You can put this solution on YOUR website!
.

Future value formula in this case is


    FV = 3000%2Ae%5E%280.07%2At%29,  t in years, e = 2.71828  (approximately.


Substituting


    FV = 3000%2A2.71828%5E%280.07%2A19%29 = 11,343.12 dollars.    ANSWER

Solved.

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To see many other similar solved problems on continuously compounded accounts,  see the lesson
    - Problems on continuously compounded accounts
in this site.

After reading this lesson,  you will tackle such problems on your own without asking for help from outside.


Also,  you have this free of charge online textbook in ALGEBRA-I in this site
    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lesson is the part of this online textbook under the topic "Logarithms".


Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.