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21 June, 04:30

If $1000 is invested for x years at 11%, compounded continuously, the future value that results is S = 1000e0.11x. What amount will result in 3 years? (Round your answer to the nearest cent.)

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  1. 21 June, 06:06
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    The result in 3 year will be $1,391

    Explanation:

    Continuous compounding occurs when someone reinvest his principal and interest earned every year to indefinite period of time.

    Future value

    S = 1000e0.11x

    Future Value in 3 years

    S = 1000 x [e^0.11 (3) ] =

    S = 1,000 x 1.39097

    S = $1,390.97
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