If $900 Is Deposited in a Savings Account That Pays

question 12

Multiple Choice

If $900 is deposited in a savings account that pays interest at a rate of % per year compounded continuously, find the balance after 7 years.

• A)$1,393.95
• B)$1,369.77
• C)$3,484.87
• D)$581.08
• E)$1,418.56

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Definitions:

Special Dividend

A one-time distribution of earnings to shareholders, outside of the regular dividend schedule.

Stock Repurchase

A decision by a company to buy back its own shares from the marketplace, potentially to increase the value of remaining shares.

Outstanding Shares

Outstanding shares refer to the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Debt-equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.