What is the future value of investing $9,000 for 7 years at a continuously compounded rate of 11%?

Question

Quizplus · Accepted Answer

The formula for continuously compounded interest is:

A = Pe^(rt)

Where A is the future value, P is the principal amount, e is the mathematical constant (approximately equal to 2.71828), r is the interest rate, and t is the time in years.

Plugging in the given values, we get:

A = 9000*e^(0.11*7) 
A = 9000*e^(0.77) 
A = 9000*2.16359 
A = $19,437.90 (rounded to two decimal places)

Therefore, the correct answer is D.

What Is the Future Value of Investing $9,000 for 7