Exploring Continuous Compound Interest

An investment of $5000 is made in a bank account that offers continuous compounding at an annual interest rate of 4%. What will be the value of the investment after 3 years?

• $5624.50

• $5634.86

• $6000.00

• $5500.00

If you want to have $10,000 in your account after 5 years, and the account offers continuous compounding at an annual interest rate of 3%, how much should you invest now?

• $8,500.00

• $8,626.09

• $9,000.00

• $9,500.00

A principal amount of $2000 is invested in a savings account with a continuous compounding interest rate of 5% per annum. How much will the investment grow to in 10 years?

• $3,000.00

• $3,200.00

• $3,286.49

• $3,500.00

An investor wants to double their investment using an account that offers continuous compounding at an annual interest rate of 6%. Approximately how many years will it take to achieve this?

• 10 years

• 11.55 years

• 12 years

• 13 years

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CCSS.HSF.LE.A.4

A company invests $15,000 in a project with continuous compounding at an annual interest rate of 7%. What will be the value of the investment after 8 years?

• $25,000.00

• $26,000.00

• $26,786.15

• $27,000.00