Answer:
$91,409
.32
Explanation:
the formula used to calculate continuously compounded interest:
A = Peˣⁿ
where:
- A = future value = ?
- P = principal = $35,000
- e = mathematical constant = 2.71828
- x = interest rate = 4% = 0.04
- n = periods = 24 years
A = $35,000 x 2.71828⁰°⁰⁴ˣ²⁴ = $35,000 x 2.71828⁰°⁹⁶ = $35,000 x 2.61169 = $91,409.32
Continuously compounding interest means that your money and earned interest is earning interest all the time, i.e. it is continuously compounding infinitely many times per year.
