You Have $100,000 That You Want to Invest $\sum_{i=1}^{365} 200(365) e^{\frac{0.05}{365} t_{i}} \Delta t$

question 35

Multiple Choice

You have $100,000 that you want to invest.Some "business men" are willing to sell you a machine for your $100,000 that prints money.You figure that every day you can print $200 with the machine, and you would deposit the $200 each day in a "special" bank account at BCCI.Your friends at BCCI will only be able to offer you 5% nominal annual interest, compounded continuously, due to the "sensitive nature" of the transaction.It would be your intention to print money each day for one year.Which of the following sums gives the value of your bank balance after one year?

• A) \(\sum_{i=1}^{365} 200(365) e^{\frac{0.05}{365} t_{i}} \Delta t\) , with \(\Delta t=1\) day
• B) \(\sum_{i=1}^{365} 200\left(e^{\frac{0.05}{365}\left(365-t_{i}\right)}-1\right) \Delta t\) , with \(\Delta t=1\) day
• C) \(\sum_{i=1}^{365} 200 e^{\frac{0.05}{365}}\left(365-t_{i}\right) \Delta t\)
• , with \(\Delta t=1\) day
• D) \(\sum_{i=1}^{365} 200\left(e^{\frac{0.05}{365} t_{i}}-1\right) \Delta t\) , with \(\Delta t=1\) day

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Definitions:

Greater Resources

Refers to having access to more abundant or higher quality resources, which can influence power dynamics and opportunities within societies.

Empirical Study

A study based on observation or experience, relying on experimental or measurable evidence subject to specific principles of reasoning.

Social Realism

An art movement that focuses on depicting social and political conditions realistically, as in the lives of everyday people, often with a critique of the status quo.

Sociology

The study of social behavior, societies, patterns of social relationships, social interaction, and culture that surrounds everyday life.