The final value of the investment at a rate of 4.75% compounded continuously for 25 years is $49,183.11.
What is the accrued amount of the investment?
The formula accrued amount compounded continuously is expressed as;
A = P × e^(rt)
Where A is accrued amount, P is principal, r is interest rate and t is time.
Given the data in the question;
- Principal P = $15,000
- Compounded contiously
- Time t = 25 years
- Interest rate r = 4.75
- Accrued amount A = ?
Plug the given values into the above formula and solve for A.
A = P × e^(rt)
A = $15,000 × e^( 4.75% × 25 )
A = $15,000 × e^( 4.75/100 × 25 )
A = $15,000 × e^( 0.0475 × 25 )
A = $15,000 × (2.71828)^1.1875
A = $49,183.11
Therefore, the accrued amount of the investment is $49,183.11.
Option A is the correct answer.
Learn more about compound interest here: brainly.com/question/27128740
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