Answer :
To calculate the accumulated amount for a principal of $29,000 compounded continuously at 3.4% for 15 years, use the formula A = Pe^(rt). Substituting the values into the formula gives A = 29000 * e^(0.034 * 15). This will give you the future value of the investment. So, the accumulated amount for a principal of $29,000 compounded continuously at 3.4% for 15 years is approximately $48,133.34.
To find the amount a accumulated after investing a principal p for t years at an interest rate r compounded continuously, the formula that is used is: A = Pert Where:
- P is the principal amount ($29,000)
- r is the annual nominal interest rate (3.4%/100 = 0.034)
- t is the time in years (15)
- e is the base of the natural logarithm (approximately 2.71828)
Plugging the values into the formula, we get: A = 29000 * e(0.034 * 15)
Now, we need to calculate the exponent first: 0.034 * 15 = 0.51
Then raise e to this power using a calculator, and then multiply by the principal: A = 29000 * e0.51
By doing so, you will find the future value of the investment after 15 years with the given continuous compounding rate.
So, the accumulated amount for a principal of $29,000 compounded continuously at 3.4% for 15 years is approximately $48,133.34.
