Continuous compounding For the case in the following? table, find the future value at the end of the deposit? period, assuming that interest is compounded continuously at the given nominal annual rate

Accounting Sep 07, 2020

Continuous compounding For the case in the following? table, find the future value at the end of the deposit? period, assuming that interest is compounded continuously at the given nominal annual rate. ?(Click on the icon located on the? top-right corner of the data table below in order to copy its contents into a? spreadsheet.)

Amount of initial deposit ?$3,500

Nominal annual rate 11?%

Deposit period (years)13

The future value at the end of the deposit period is ?$??? ?(Round to the nearest? cent.)

Expert Solution

Computation of Future Value:

Future Value = Pe^rt

Here,

P = Amount of Initial Deposit = $3,500

r = Nominal Annual Rate = 11%

t = Deposit Period = 13 Years

Future Value = $3,500 * e^{(11% * 13)}

Future Value = $14,625.45

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote