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When Interest Is Compounded Continuously, the Rate of Change of the Amount

question 49

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When interest is compounded continuously, the rate of change of the amount x of the investment is proportional to the amount present. In this case, the proportionality constant is the annual interest rate r (as a decimal) ; that is, When interest is compounded continuously, the rate of change of the amount x of the investment is proportional to the amount present. In this case, the proportionality constant is the annual interest rate r (as a decimal) ; that is,   . If $2,500 is invested at 7%, compounded continuously, what will be the future value of this investment after 12 years? Round to the nearest cent. ​ A) $4,600.00 B) $5,776.80 C) $5,630.48 D) $5,708.32 E) $5,790.92 . If $2,500 is invested at 7%, compounded continuously, what will be the future value of this investment after 12 years? Round to the nearest cent. ​

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Definitions:

Book Value

Book value is the net value of a company's assets found on its balance sheet, calculated as the total assets minus intangible assets and liabilities.

Par Value

The nominal face value of a security as stated by the issuer, often used in reference to bonds or shares.

Paid-in Capital

Funds raised by a company through the sale of stock or other equity instruments, reflecting the investment made by shareholders.

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