The Initial Investment in a Savings Account in Which Interest $\$ 813$

question 8

Multiple Choice

The initial investment in a savings account in which interest is compounded continuously is $\$ 813$ . If the time required to double the amount is $9 \frac { 1 } { 4 }$ years, what is the annual rate? Round your answer to two decimal places.

• A) \(7.49 \%\)
• B) \(7.70 \%\)
• C) \(13.34 \%\)
• D) \(6.29 \%\)
• E) \(8.89 \%\)

---

Definitions:

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A report showcasing a corporation's financial results for a particular accounting cycle, which includes information on income, costs, and earnings.

Average Collection Period

The average number of days it takes for a company to receive payment after a sale has been made, indicating the efficiency of credit and collections policies.

Balance Sheet

A financial statement that displays a company’s assets, liabilities, and shareholders' equity at a specific point in time.