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7Use the compound interest formulas Aand A = Pert to solve. Find the accumulatedvalue of an investment of $4000 at 11% compounded continuously for 5 years.= Pp(1+.)"nO $6,915.66O $6,933.01O $6,928.99O $6,832.58

7Use the compound interest formulas Aand A = Pert to solve. Find the accumulatedvalue of an investment of $4000 at 11% compounded continuously for 5 years.= Pp( class=

Answer :

Given:

Value of an investment of $4000 at 11% compounded continuously for 5 years.

Required:

Find the accumulated value of an investment.

Explanation:

We know that

[tex]A=Pe^{rt}[/tex]

Where, P = Original principal sum

r = Nominal annual interest rate

t = length of time the interest is applied.

Now,

[tex]\begin{gathered} A=4000\times e^{(0.11\times5)} \\ A=6933.01 \end{gathered}[/tex]

Answer:

Hence, option b is correct.

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