$$\text { Use the compound interest formulas } A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$$

question 69

Multiple Choice

$$\text { Use the compound interest formulas } A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$$
-Suppose that you have $10,000 to invest. Which investment yields the greater return over 6 years: 8.75% compounded continuously or 8.9% compounded semiannually?

• A)$10,000 invested at 8.75% compounded continuously over 6 years yields the greater return.
• B)Both investment plans yield the same return.
• C)$10,000 invested at 8.9% compounded semiannually over 6 years yields the greater return.

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Definitions:

Debunking

Looking behind the facades of everyday life.

Peter Berger

A sociologist known for his work in the sociology of knowledge, religion, and his contributions to sociological theory, notably in his book "The Social Construction of Reality."

Manifest Functions

The explicit and intended outcomes or consequences of social institutions and processes.

Empirical Science

A branch of science that relies on observation, experimentation, and evidence-based methodologies to acquire knowledge.