a. Compute the future value of $1,900 continuously compounded for 7 years at an
ID: 2405026 • Letter: A
Question
a. Compute the future value of $1,900 continuously compounded for 7 years at an annual percentage rate of 9 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Compute the future value of $1,900 continuously compounded for 5 years at an annual percentage rate of 13 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Compute the future value of $1,900 continuously compounded for 9 years at an annual percentage rate of 4 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. Compute the future value of $1,900 continuously compounded for 7 years at an annual percentage rate of 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Explanation / Answer
Calculation for future value compounded continously
Future value = Pe^rt
a. Future value = $1,900e^0.09*7
= $1,900e^0.63
= $1,900*1.87767
= $3,567.57
b.Future value =$1,900e^0.13*5
= $1,900e^0.65
= $1,900*1.91560
= $ 3,639.64
c. Future value = $1,900e^0.04*9
= $1,900e^0.36
= $1,900*1.43337
= $2,723.40
d. Future value = $1,900e^0.06*7
= $1,900e^0.42
= $ 1,900*1.522011
= $ 2,891.82
Working notes
'^' represent to 'power'
'*' represent to 'multiply'
Claculation for e
Multiply e's power with 0.00024417206 , then add 1 and then (*)(=) 12 times.
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