What is the future value of investing $3,000 for 3/4 year at a continuously compounded rate of 12%?

Name: What is the future value of investing $3,000 for 3/4 year at a continuously compounded rate of 12%?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The future value of an investment with continuous compounding is calculated using the formula FV = P * e^(rt), where P is the principal amount, r is the annual interest rate, and t is the time in years. For this problem, FV = 3000 * e^(0.12 * 0.75) = 3000 * e^0.09 ≈ $3,283.

What Is the Future Value of Investing $3,000 for 3/4