Assume you could invest 25000 at a continuously compounded r

Assume you could invest $25,000 at a continuously compounded rate of 10 percent. What would your investment be worth at the end of 50 years?

$2,933,054

$3,500,824

$3,911,215

$3,710,329

$3,648,029

Solution

Amount Invested = $25,000
Continuously Compounded Rate, ? = 10%
Time Period = 50 years

Accumulated Sum = Amount Invested * exp^(? * t)
Accumulated Sum = $25,000 * exp(0.10 * 50)
Accumulated Sum = $25,000 * exp^(5)
Accumulated Sum = $25,000 * 148.41316
Accumulated Sum =$3,710,329

So, value of investment after 50 years is $3,710,329