P5-40 Continuous compounding For each of the cases in the following table, find the future value at the end of the deposit period, assuming that interest is compounded continuously at the given nominal annual rate. Case A B C D Amount of initial deposit $1,000 600 4,000 2,500 VF = (VP) (x) Nominal annual rate, r 9% 10 8 12 Deposit period (years), n 2 10 7

5-40 Continuous compounding For each of the cases in the following table, find the future value at the end of the deposit period, assuming that interest is compounded continuously at the given nominal annual rate. VFn=(VP)(ejn)