On Each of Two Days (January 1, 2005 and January $\int_{0}^{2} 500 e^{0.08 t} d t$

question 77

Multiple Choice

On each of two days (January 1, 2005 and January 1, 2006) , a person deposits $500 in a savings bank.The bank deposits interest in the account at a rate of 8%, compounded continuously.Choose the sum/integral that gives the size of the bank account at the end of 2006.

• A) \(\int_{0}^{2} 500 e^{0.08 t} d t\)
• B) \(\int_{0}^{2}\left(500+500 e^{0.08 t}\right) d t\)
• C) \(500+500 e^{0.08}\)
• D) \(\left(500+500 e^{0.08}\right) e^{0.08}\)

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Definitions:

Recession

A period of significant decline in economic activity across the economy, lasting more than a few months, typically visible in GDP, income, employment, and trade.

Business Cycle

The natural rise and fall of economic activity over time, characterized by periods of expansion, peak, contraction, and trough.

Cost-Push Inflation

Inflation caused by an increase in prices of inputs like labor and raw materials, leading to higher costs for products and services.

Demand-Pull Inflation

Inflation that occurs when demand for goods and services exceeds existing supplies, leading to higher prices.