A present sum of $40,000 at an interest rate of 10% per year compounded continuously is equivalent to how much money 4 years later?
Added by Jack W.
Step 1
FV = PV x (1 + r/n)^(n*t) where FV is the future value, PV is the present value, r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years. In this case, PV = S40,000, r = 10%, n = infinity (since it is Show more…
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