We can calculate the future value when the interest is compound continously as:
[tex]FV=PV\cdot e^{rt}[/tex]where r is the annual rate of interest, and t the nunmber of periods (years).
Then, for r=0.06, t=10 and PV=10,000, we have:
[tex]FV=10,000\cdot e^{0.06\cdot10}=10,000\cdot e^{0.6}\approx10,000\cdot1.8221=18,221[/tex]The
