find the accumulated value of an investment of 5000 at 9% compounded continuously for 6 years.

Answer 1

Amount = 5000(e)^(.09x6)
= 5000(e^.54)
= 8580.03

your general formula is
Amount = Principal(e)^rt where r is the annual rate and t is the number of years.

Answer 2

I don't understand what it is exaclty you multiply to get 8580.03. Please respond back. I need to understand this. Because when I multiply 5000x.54 I don't get that.

Answer 3

I am using the exponential function e^x

it is the inverse function of ln on your calculator.

The nature of the question requires you to know about exponential functions.

On my calculator I press
2nd F (ln)
.54
=
to get 1.7160068...