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24 October, 00:34

Find the future value and interest earned if $8906.54 is invested for 9 years at 6% compounded continuously

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  1. 24 October, 02:06
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    To find the future value the formula is

    A=p e^rt

    A future value?

    P present value 8906.54

    R interest rate 0.06

    T time 9 years

    E constant

    A=8,906.54*e^ (0.06*9)

    A=15,283.68

    To find the interest earned the formula is

    I=A-p

    I=15,283.68-8,906.54

    I=6,377.14
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