6)
Given:
The revenue amount, P = $ 16,000.
The period of time, t= 10 years.
The growth rate, r = 5% = 0.05.
Compounded continuously.
Required:
We need to find the future value.
Explanation:
Consider the formula to find the amount by compound continuous.
[tex]A=Pe^{rt}[/tex]
Substitute P=16000, r =0.05 and t=10 in the formula to find the future value.
[tex]A=16000e^{(0.05)\times10}[/tex]
[tex]A=26379.5403312[/tex]
Rounded to the nearest cent.
[tex]A=26379.54\text{ dollars}[/tex]
Final answer:
[tex]Future\text{ value\lparen exact value\rparen}=26379.5403312\text{ dollars.}[/tex]
[tex]Future\text{ value}=26379.54\text{ dollars}[/tex]
