. Your grandmother has established a trust fund that pays you $3,500 each year for 15 years. upon receiving each payment, you invest the $3,500 into an account that pays 7% compounded continuously. What is the future value of the account at the end of the 15 years?

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Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.