Find the accumulated value of an investment of 5000 for 10 y

Find the accumulated value of an investment of $5,000 for 10 years at an interest rate of 4.5% if the money is

a.) compound monthly

b.) compound continuously

Solution

a) A = P[1 + (r/n)]^nt

A = 5000*[1 + 0.045/12]^(12*10) = 5000*(1. 00375)^120

A = $ 7834.96

b) A = 5000*e^(0.045*10) = $7841.56