Answer:
Step-by-step explanation:
The formula for continuously compounded interest is expressed as
FV = PV x e (i x t)
where
FV represents the future value of the investment.
PV represents the present value of the investment.
i represents the stated interest rate, t represents time in years,
e is the mathematical constant approximated as 2.7183
From the information given,
t = 10 years
I = 7.5% = 7.5/100 = 0.075
PV = 2000
Therefore
FV = 2000 x 2.7183 (0.075 x 10)
FV = $4234
