Consider a CD paying a 3% APR compounded continuously. Find the future value of the CD if you invest $9000 for a term of three years

Question

Pre Test question that I really need help on! 

Answer 1

The formula for this calculation is Future value  = Principal x (e)^rt, where r = rate (as a decimal), and t = time in years. e is a constant whose value is 2.7183

 

So, our formula is FV = $9,000 x (2.7183)^{0.03 x 3}

which becomes FV = $9,000 x 1.09417 ≅ $9,847