An Investment Is Expected to Pay 7% Per Year Compounded

question 76

Multiple Choice

An investment is expected to pay 7% per year compounded continuously. If you want the value of the investment to be $600,000 after 25 years, how much should you invest initially? Round to the nearest dollar.

• A)$26,066
• B)$52,132
• C)$104,264
• D)$208,529
• E)$267,494

---

Definitions:

Natural Selection

Mechanism of evolutionary change caused by environmental selection of organisms most fit to reproduce; results in adaptation to the environment.

Fixed-Action Pattern

A fixed-action pattern is a sequence of unlearned, innate behaviors that is triggered by a specific stimulus and is carried to completion once started.

Egg Rolling

A traditional activity in which eggs are rolled on the ground, often associated with Easter celebrations.

Learning

Relatively permanent change in an animal’s behavior that results from practice and experience.