InsanelyChaotic
If $535 is invested at an interest rate of 6% per year and is compounded continuously, how much will the investment be worth in 10 years?



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InsanelyChaotic
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my answer is $973.38

kelly226
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F = Pe^rt = 535e^(0.06*18) = $1575.40

InsanelyChaotic
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thank you!!!!!!!! you ROCK

kelly226
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lol np:)

InsanelyChaotic
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wait, would i do that x ten though?

InsanelyChaotic
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my options:
$1307.12
$974.83
$973.38
$403.43

kelly226
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ummm... well if u did X ten what would u get?

kelly226
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oohh waait....

InsanelyChaotic
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it would have to be a lower number, given the answer choices

kelly226
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yea.. actually i think its $973.38..

InsanelyChaotic
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perhaps. thank you:)

kelly226
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Since the compounding is continuous, the base must e.
A=Pert, so A = 535e (.06)(10)
which is $974.83 :)

InsanelyChaotic
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thank you!!!!!!!!!!

kelly226
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your welcome:)