Give the value after 5.9 years of a capital of 3000 invested at 3.9 % using continuous compounding. Round your answer to the nearest cent.

Question

Give the value after 5.9 years of a capital of  3000 invested at 3.9 % using continuous compounding. Round your answer to the nearest cent.

Accepted Answer

Step:1 ：Given a principal amount (P) of 3000, an annual interest rate (r) of 3.9%, and a time period (t) of 5.9 years, we are to find the value of the investment after 5.9 years using the formula for continuous compounding: (A = P * e^{rt}).Step:2 ：First, convert the annual interest rate from a percentage to a decimal by dividing by 100: (r = frac{3.9}{100} = 0.039).Step:3 ：Substitute P = 3000, r = 0.039, and t = 5.9 years into the formula: (A = 3000 * e^{0.039 * 5.9}).Step:4 ：Calculate the value of the investment after 5.9 years: (A = 3776.18).Step:5 ：(boxed{The value of the investment after 5.9 years is 3776.18}).

Answer

Step: 1 ：Given a principal amount (P) of 3000, an annual interest rate (r) of 3.9%, and a time period (t) of 5.9 years, we are to find the value of the investment after 5.9 years using the formula for continuous compounding: (A = P * e^{rt}).Step: 2 ：First, convert the annual interest rate from a percentage to a decimal by dividing by 100: (r = frac{3.9}{100} = 0.039).Step: 3 ：Substitute P = 3000, r = 0.039, and t = 5.9 years into the formula: (A = 3000 * e^{0.039 * 5.9}).Step: 4 ：Calculate the value of the investment after 5.9 years: (A = 3776.18).Step: 5 ：(boxed{The value of the investment after 5.9 years is 3776.18}).

Give the value after 5.9 years of a capital of $$ 3000$ invested at $3.9 %$ using continuous compounding. Round your answer to the nearest cent.

Answer

Popular Problems

Give the value after 5.9 years of a capital of $3000 invested at 3.9% using continuous compounding. Round your answer to the nearest cent.

Answer

Popular Problems

Give the value after 5.9 years of a capital of $$ 3000$ invested at $3.9 %$ using continuous compounding. Round your answer to the nearest cent.