Suppose an investment of $16,000 is invested at an annual rate of 6%, compounded continuously. What is the value of the account after 23 years? Round your answer to the nearest cent/penny.

Question

Suppose an investment of $16,000 is invested at an annual rate of 6%, compounded continuously. What is the value of the account after 23 years? Round your answer to the nearest cent/penny.

Answer 1

16000e^.06(23)= 16000e^1.38= $63,598.43

general formula is

A=Pe^rt

P=16000

r=6%=.06

t=23

e= about 2.718281828...

A= Amount after P invested at r interest for t years componded continuously