Find the Accumulated Amount After 5 Year(s) If $7,000 Is

question 142

Multiple Choice

Find the accumulated amount after 5 year(s) if $7,000 is invested at 9% compounded continuously. Round your answer to the nearest cent. ​

• A) $10,959.77
• B) $10,870.79
• C) $10,978.19
• D) $10,923.56

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Definitions:

Borrowing Rate

The interest rate applied to loans and borrowings taken by a company or an individual.

Note Payable

A written promise to pay a certain amount of money, usually with interest, at a future date or over a period of time.

Market Interest Rate

The rate at which interest is paid by borrowers for borrowing funds in the market.

Compounded Annually

A method of calculating interest in which the interest earned each year is added to the principal, so that the balance doesn't merely grow, it grows at an increasing rate.