What is the future value of $100 continuously compounded at a rate of 8% p.a.for 9 months?
A)$106.18
B)$108.32
C)$110.56
D)$102.56

Question

Quizplus · Accepted Answer

The future value of continuously compounded interest is calculated using the formula FV = P * e^(rt), where P is the principal, r is the rate, and t is the time in years. For $100 at 8% for 9 months (0.75 years), FV = 100 * e^(0.08*0.75) ≈ $106.18.

What Is the Future Value of $100 Continuously Compounded at a Rate