Natalle Nguyen&16/12/18 11 Quiz: Chapter 5 Quiz This Question: 3 pts Submit Qulz

Question

Natalle Nguyen&16/12/18 11 Quiz: Chapter 5 Quiz This Question: 3 pts Submit Qulz 1 of 7 (0 complete) This Quiz: 10 pts possible For the following amount at the given interest rate compounded continuously, find (a) the future value after 5 years, (b) the effective rate, and (c) the time to reach $14,000. mpts $5600 at 3.4% a.The future value after 5 years is approximately40 Do not round until the final answer. Then round to the nearest cent as needed.) b. The effective rate is% (Do not round until the final answer. Then round to two decimal places as needed.) C. The time to reach $14,000 frorm SS600 at 34% i+Dyears. (Do not round until the final answer. Then round to two decimal places as needed) of of oo see Enter your answer in each of the answer boxes. 11:59pm image.ipg

Explanation / Answer

Future Value = FV = PeYr

FV = $5600 * e5*0.034

FV = $5600 * 1.1853054

FV = $6637.71

b. Effective Interest Rate

(1 + r/365)365-1

1.0000932365-1

3.46%

C. It will take 26.95 Years for $5600 with interest rate of 3.4% to reach $14000

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