The Formula for Finding the Amount an Investment Grows to If

question 47

Short Answer

The formula for finding the amount an investment grows to if it is compounded continuously is A = Pert, A is the accumulated amount, P is the principal invested, e is the natural exponent, r is the rate per year, and t is the number of years. Find the accumulated amount A if $1,500 is compounded continuously for 5 years at 6% per year.

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Definitions:

Liability

The legal responsibility for one's actions or inaction, which may result in financial compensation or legal penalties.

Declaration of Value

An official statement indicating the market value of property or goods, often required for insurance purposes or in the context of shipping and customs.

Watches

Portable timepieces designed to be worn or carried, allowing the user to keep track of time.

Warehouse

A large building where raw materials or manufactured goods may be stored before their distribution for sale.