Answered

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An investment of $2,375 is made in a 7-year cd that earns 314% annual interest that is compounded continuously. how much will the cd be worth at the end of the 7-year term? round your answer to the nearest cent. do not include the dollar sign.

Sagot :

The worth of the cd at the end of 7 years will be $384,101.79.

What will be the worth of the investment?

When an investment earns an interest that is compounded continuously, it means that it earns interest continuously.

The formula for calculating future value when there is continuous compounding is : A x e^r x N

Where:

  • A= amount
  • e = 2.7182818
  • N = number of years
  • r = interest rate

2375 x (e^3.14) x 7 = $384,101.79

To learn more about continuous compounding, please check: https://brainly.com/question/26476328

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