An Initial Amount of $5500 Is Invested in an Account

question 64

Multiple Choice

An initial amount of $5500 is invested in an account with interest compounded continuously. The interest rate is 10%. Find the value of the account after 14 years.

• A) $22,303.60
• B) $6,614,323,547.27
• C) $21,643.60
• D) $5501.40

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Definitions:

Curve

A graphical representation of the relationship between two or more variables in a coordinate system, often used in economics to illustrate supply and demand.

Shutdown Point

The level of operation at which a company does not benefit from continuing operations and may decide to temporary halt production—it's where marginal cost equals average variable cost.

Lowest Price

The minimum amount at which a product or service is sold, often determined by costs, competition, and market demand.

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to changes.