The Future Value S of an Investment Earning 7% Compounded

question 51

Multiple Choice

The future value S of an investment earning 7% compounded continuously is a function of the principal P and the length of time t that the principal been invested. It is given by . Find the future value of $42,000 invested for 30 years. ​

• A)$45,045.34
• B)$343,326.42
• C)$300,979.14
• D)$8.17
• E)$342,979.14

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Definitions:

Memo Pads

Stationery items consisting of small sheets of paper for brief notes, reminders, or messages.

Short Run

A period in which at least one input or factor of production is fixed, allowing only some inputs to change.

Long Run

A period of time in economics during which all inputs and factors of production can be adjusted, allowing for full industry adjustment to changes.

Production

The process of combining inputs to make goods or services.