Respuesta :
The worth of investment after 25 years is $17545419.8 approximately.
Solution:
Given, If $4,000,000 is invested at 5% interest compounded continuously,
We have to find how much will the investment be worth in 25 years?
The formula for Compound interest is given as:
[tex]\text { Compound interest }=\text { amount } \times\left(1+\frac{\text { rate }}{100}\right)^{ time }[/tex]
Substituting the values we get,
[tex]\begin{array}{l}{=4000000 \times\left(1+\frac{5}{100}\right)^{25}} \\\\ {=4000000 \times(1.05)^{25}} \\\\ {=4000000 \times 3.38635=13545419.7636}\end{array}[/tex]
Now, investment worth after 25 years = invested amount + compound interest
= 4000000 + 13545419.7636 = 17545419.7636
Hence, the worth of investment after 25 years is $17545419.8 approximately.
