Solve the problem.
-Richard deposits $\$ 2000$ in an IRA at $10 \%$ interest compounded continuously for his retirement in 25 years. He intends to make continuous deposits of $\$ 2500$ a year. How much will be accumulated in 5 years?
A) $\$ 19,172$
B) $\$ 19,986$
C) $\$ 19,515$
D) $\$ 19,371$

Question

Quizplus · Accepted Answer

The future value of continuous compounding is calculated using the formula $ A = Pe^{rt} $ for the initial deposit and $ A = \frac{R}{r}(e^{rt} - 1) $ for continuous deposits. Calculate each separately and sum them for the total amount.

Solve the Problem $2000\$ 2000$2000 In an IRA At 10%10 \%10% Interest Compounded Continuously for His Retirement in 25 Years

Solve the Problem $\$ 2000$ In an IRA At $10 \%$ Interest Compounded Continuously for His Retirement in 25 Years