American_Bankers_Association
CTFA · Question #287
With continuous compounding at 10 percent for 30 years, the future value of an initial investment of $2,000 is closest to:
The correct answer is B. $40,171. See the full explanation below for the reasoning.
Investment Management
Question
With continuous compounding at 10 percent for 30 years, the future value of an initial investment of $2,000 is closest to:
Options
- A$34,898
- B$40,171
- C$164,500
- D$328,282
How the community answered
(26 responses)- A8% (2)
- B73% (19)
- C4% (1)
- D15% (4)
Topics
#continuous compounding#future value#time value of money#compound interest
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