16. Suppose you decided to place $2,500 in a savings account at First Foremost Savings and Loan. If the account pays 7% compounded continuously, how much money will you have in the account after 15 years

Final Value = $7,144.13

Explanation:

Giving the following information:

Suppose you decided to place $2,500 in a savings account at First Foremost Savings and Loan. The account pays 7% compounded continuously.

Number of years = 15

Because it is compound continuously, we need to use the mathematical constant e.

To calculate the final value, we need to use the following formula:

FV = PV*[e^ (i*n) ]

FV = 2,500*[e^ (0.07*15) ]

FV = 2,500 * (e^1.05)

FV = $7,144.13