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Accumulated Amount of Money Flow  An investment is expected to yield a uniform continuous rate of money flow of $20,000 per year for 3 years. Find the accumulated amount at an interest rate of 4% compounded continuously.

Respuesta :

Answer:

Amount after 3 years will be $22496

Step-by-step explanation:

We have given principal amount P = $20000

Rate of interest r = 4 %

Time period t = 3 years

We have to find the amount after 3 years

Amount is given by [tex]A=P(1+\frac{r}{100})^n[/tex]

So [tex]A=20000(1+\frac{4}{100})^3[/tex]

[tex]A=20000\times (1.04)^3=20000\times 1.1248=22496[/tex]

So amount after 3 years will be $22496

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