Ask Question
9 March, 08:21

If $1000 is invested for x years at 11%, compounded continuously, the future value that results is S = 1000e0.11x. What amount will result in 3 years? (Round your answer to the nearest cent.)

+5
Answers (1)
  1. 9 March, 08:27
    0
    The result in 3 year will be $1,391

    Explanation:

    Continuous compounding occurs when someone reinvest his principal and interest earned every year to indefinite period of time.

    Future value

    S = 1000e0.11x

    Future Value in 3 years

    S = 1000 x [e^0.11 (3) ] =

    S = 1,000 x 1.39097

    S = $1,390.97
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If $1000 is invested for x years at 11%, compounded continuously, the future value that results is S = 1000e0.11x. What amount will result ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers