Write the Word or Phrase That Best Completes Each Statement $3.5 \%$

question 4

Multiple Choice

Write the word or phrase that best completes each statement or answers the question.
-The purchasing power of a dollar is decreasing at the rate of $3.5 \%$ annually, compounded continuously. How long will it take for the purchasing power of $\$ 1.00$ to be worth $\$ 0.62$ ? Round answers to the nearest hundredth.

• A) \(1.37 \mathrm { yr }\)
• B) \(17.71 \mathrm { yr }\)
• C) \(13.66 \mathrm { yr }\)
• D) \(0.14 \mathrm { yr }\)

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Definitions:

Vesting

The process by which an individual acquires the right to a present or future payment, benefit, or asset, becoming fully guaranteed even if the individual's status changes.

Personal Service

Personal service is a type of service delivered by an individual to meet personal needs or requirements of customers, often characterized by direct interaction.

Contractual Obligations

Legal duties that arise out of agreements between two or more parties where each has responsibilities to perform as specified in the contract.

Assignment

The transfer of rights, property, or obligations from one party to another.