SOLUTION: An initial investment of $3,000 earns 8% interest compounded continuously. What will the investment be worth in 17 years? (Round your answer to the nearest cent.)
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Question 1190349: An initial investment of $3,000 earns 8% interest compounded continuously. What will the investment be worth in 17 years? (Round your answer to the nearest cent.) Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! continuous compound formula is f = p * e ^ (r * t)
f is the future value
p is the present value
e is the scientific constant equal to 2.718281828....
r is the interest rate per time period.
t is the number of time periods.
in your problem, the formula becomes f = 3000 * e ^ (.08 * 17)
your time periods are in years.
solve for f to get f = 11688.57991.
round to 11688.58.
