SOLUTION: Rochelle deposits $5,000 in an IRA. What will be the value (in dollars) of her investment in 25 years if the investment is earning 7% per year and is compounded continuously? (Simp

Algebra ->  Exponents -> SOLUTION: Rochelle deposits $5,000 in an IRA. What will be the value (in dollars) of her investment in 25 years if the investment is earning 7% per year and is compounded continuously? (Simp      Log On


   

Question 1153207: Rochelle deposits $5,000 in an IRA. What will be the value (in dollars) of her investment in 25 years if the investment is earning 7% per year and is compounded continuously? (Simplify your answer completely. Round your answer to the nearest cent.)

Answer by ikleyn(52847) About Me  (Show Source):
You can put this solution on YOUR website!
.

The future value  FV = 5000%2Ae%5E%280.07%2A25%29.


where e = 2.71828 is the base of natural logarithms (the Euler's number).


So, your formula is  FV = 5000%2A2.71828%5E%280.07%2A25%29.


At this point, use your calculator.