Provide an Appropriate Response

question 8

Multiple Choice

Provide an appropriate response.
-A man with $9000 to invest puts the money into an account that earns 8% compounded continuously.Graph the corresponding present value function and calculate the number of years before the $9000 will be due in order for its present value to be $7000.Use the formula P = Ae-rt.

• A) 3.14 years
• B) 6.28 years
• C) 7.45 years
• D) 0.84 years

---

Definitions:

Government Loans

Financial aid provided by the government to individuals, businesses, or other organizations, often with more favorable terms than private loans.

Franchisors

Entities that allow individuals or entities (franchisees) to operate a business under their brand and business model for a fee.

Freemium Business Models

A business strategy where basic services are provided free of charge while more advanced features must be paid for.

Market Competition

The rivalry among businesses to attract customers, increase sales, and improve market share by offering better products, prices, or services.