Answer:
Final Value= $7,144.13
Explanation:
Giving the following information:
Suppose you decided to place $2,500 in a savings account at First Foremost Savings and Loan. The account pays 7% compounded continuously.
Number of years= 15
Because it is compound continuously, we need to use the mathematical constant e.
To calculate the final value, we need to use the following formula:
FV= PV*[e^(i*n)]
FV= 2,500*[e^(0.07*15)]
FV= 2,500*(e^1.05)
FV= $7,144.13
