Answered: Use the Continuous Compound Interest I…

Use the Continuous Compound Interest I information above to answer this question. If $11,413 is is invested in this CD, how much will it be worth at maturity in 10 years? Round to the nearest cent. $

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 4P

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Question

Continuous Compound Interest

Jesaki Bank offers a 10 -year CD that earns2.3%compounded continuously.

Use this information to answer questions 1-2 below.

Use the Continuous Compound Interest I information above to answer this question.
If $11,413 is is invested in this CD, how much will it be worth at maturity in 10 years? Round to
the nearest cent.
$

Use the Continuous Compound Interest I information above to answer this question.
If $10,000 is invested in this CD, how long will it take for the account to be worth $11,775? Round
to the nearest tenth of a year.
years

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