Find the total amount of an investment of $5000 at 6% interest compounded continuously for 8 years. Round your answer to the nearest hundredth. Enter the answer as the example: $1234.56

Question

mathstudent55 · Answer

Non-continuous compounding:

$\Large F = P\left(1 + \dfrac{r}{n}\right)^{nt}$

F = future value
P = present value
r = interest rate per period
n = number of periods per year
t = number of years

Continuous compounding:

$\Large F = Pe^{rt} $

F = future value
P = present value
r = annual interest rate
t = number of years