Certified Trust and Fiduciary Advisor (CTFA) — Question 2

With continuous compounding at 10 percent for 30 years, the future value of an initial investment of $2,000 is closest to:

Answer options

• A. $34,898
• B. $40,171
• C. $164,500
• D. $328,282

Correct answer: B

Explanation

The correct answer is B, $40,171, which reflects the accurate calculation of continuous compounding using the formula FV = Pe^(rt). The other options do not represent the correct future value based on the provided rate and time frame.