Future Value $s ( t ) = 900 e ^ { 005 t }$

question 8

Multiple Choice

Future value. The future value that accrues when $900 is invested at 5%, compounded continuously, is $s ( t ) = 900 e ^ { 005 t }$ , where t is the number of years. At what rate is the money in this account growing when $t = 9 ?$

• A)$14.11 per year
• B)$49.24 per year
• C)$1411.48 per year
• D)$941.43 per year
• E)$70.57 per year

---

Definitions:

Treasury Bill

Short-term U.S. government debt obligations backed by the Treasury Department with a maturity of less than one year.

Par Value

The face value of a bond or the stock value stated in the corporate charter, often used in legal documents.

Effective Annual Yield

Effective annual yield is the return on an investment expressed as an annualized rate, accounting for compounding over a period, providing a more accurate measure of profitability.