What is the value of a $5000 investment after 18 years, if it was invested at 4% interest compounded continuously?
1) $9,367.30
2) $9,869.39
3) $10,129.08
4) $10,272.17

D

Step-by-step explanation:

Continuous compound is given by the following formula:

Where A is the ending amount, P is the initial amount, e is Euler's number, r is the rate, and t is the time in years.

We have a $5000 investment at 4% or 0.04 for 18 years. Therefore:

Use a calculator:

Hence, our answer is D.

Step-by-step explanation:

P(t) = P0 * e^rt

=> P(18) = $5000 * e^(0.04 * 18) = $10,272.17. (4)

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Step-by-step explanation:

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