Given:
Value of an investment of $4000 at 11% compounded continuously for 5 years.
Required:
Find the accumulated value of an investment.
Explanation:
We know that
[tex]A=Pe^{rt}[/tex]
Where, P = Original principal sum
r = Nominal annual interest rate
t = length of time the interest is applied.
Now,
[tex]\begin{gathered} A=4000\times e^{(0.11\times5)} \\ A=6933.01 \end{gathered}[/tex]
Answer:
Hence, option b is correct.
