SOLUTION: Suppose that $100,000 is invested in a mutual fund that pay 13% per year compounded continuously. What will be the value of the investment after 25 years?

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Question 961813: Suppose that $100,000 is invested in a mutual fund that pay 13% per year compounded continuously. What will be the value of the investment after 25 years?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Suppose that $100,000 is invested in a mutual fund that pay 13% per year compounded continuously. What will be the value of the investment after 25 years?
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A(t) = P*e^(rt)
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A(25) = 100,000*e^(0.13*25) = 100,000*25.79034 = $257,034
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Cheers,
Stan H.
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