The Compound Amount When an Investment Is Compounded Continuously Is

question 34

Multiple Choice

The compound amount when an investment is compounded continuously is A = Peni Where A = compound amount, P = original principal, n = # of years, and i = interest rate per year. Find the compound amount of an investment of $2,500 at an interest rate of 10% for 2 years if it is compounded continuously.

• A)$3,000.00
• B)$3,053.51
• C)$4,023.59
• D)$3,025.00

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Definitions:

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The ability to achieve a desired result with minimal waste of time, effort, or resources.

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An ongoing process of detection and reduction of errors, improvement of operations, and ensuring that standards of quality are met consistently.

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Total Quality Management; a comprehensive approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.

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A set of techniques and tools for process improvement that aims to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes.