Continuously Compounded Interest

Tags

CCSS.HSF.LE.A.4

Kimi invests $4,000 at 3% interest compounded continuously. How much money will she have in 4 years?

(a)  

Twelve years ago, your grandma put money into a savings account for you that earns 7.5% interest annually and is continuously compounded. How much money is currently in your account if she initially deposited $10,000 and you have not taken any money out?

• $8,103

• 81,030

• 21,170

• 24,596

• $10,778

Answer explanation

Find the initial value of an investment if the future value is $9519.87 after 5 years at a rate of 8.79% compounded continuously.

• $9855.71

• $6134.21

• $14774.19

• $6322.93