A Principal of $70,000 Is Invested at 6% Interest for Four

question 8

Multiple Choice

A principal of $70,000 is invested at 6% interest for four years. Find the difference in the future value if the interest is compounded quarterly compared to continuous compounding. Round your answer to two decimal places.

• A)$158.45
• B)$614.05
• C)$256.65
• D)$620.43
• E)$469.93

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Definitions:

Force Majeure Clause

A contract term anticipating some catastrophic event usually exempting liability when such an event interferes with performance of the contract.

Catastrophic Event

An unexpected, large-scale disaster that causes significant -physical, economical or environmental damage or loss of life.

Condition Subsequent

A contract condition that, when it occurs, ends the party's obligation to perform under the contract.

Unilateral Release

A legal agreement where one party agrees to waive its rights or claims against another party without requiring any action or concession in return.