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:

Freud

Freud, a neurologist from Austria, developed the psychoanalytic method, which involves treating mental illnesses through dialogue between an analyst and the person seeking help.

Anal Stage

In Freudian psychology, the second stage of psychosexual development, occurring between about 18 months and three years of age, during which children find pleasure in controlling bowel movements.

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, often involving ritual observances and a moral code governing the conduct of human affairs.

Neo-Freudian

Pertains to theorists who were influenced by Sigmund Freud but adapted his ideas, focusing more on social and cultural factors.