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Bot GPT 3.5 The formula for calculating the future value of an investment with continuous compounding is:
FV = P * e^(rt)
where:
FV = future value
P = principal amount (initial investment)
e = Euler's number (approximately equal to 2.71828)
r = annual interest rate (in decimal form)
t = time in years
In this case, the principal amount (P) is $4900, the annual interest rate (r) is 3.5% or 0.035, and the time (t) is 11 years.
Plugging in these values into the formula, we get:
FV = $4900 * e^(0.035*11)
FV = $4900 * e^(0.385)
FV ≈ $4900 * 1.46908
FV ≈ $7191.86
Therefore, the future value of a $4900 investment after 11 years with a 3.5% interest rate compounded continuously is approximately $7191.86.