The Compound Amount When an Investment Is Compounded Continuously Is

question 23

Multiple Choice

The compound amount when an investment is compounded continuously is A = Peni Where A = compound amount, P = original principal, n = number of years, and i = interest rate per year. Let P = 400, I = 0.05, and n = 3, then find A.

• A)$1,858.93
• B)$3717.87
• C)$929.47
• D)$464.73

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Definitions:

Elements of Causation

Fundamental components required to establish a cause-and-effect relationship in a legal context, typically including direct cause, foreseeability, and harm.

Proximate Cause

The primary cause that in a natural and continuous sequence, unbroken by any efficient intervening cause, produces an event and without which the event would not have occurred.

Cause in Fact

A legal principle that establishes an event as the direct cause of an injury, required for proving negligence.

Res Ipsa Loquitur

A doctrine in tort law that infers negligence from the very nature of an accident or injury, in the absence of direct evidence on how any defendant behaved.