An Account Now Contains $10,118 and Has Been Accumulating Interest

question 43

Multiple Choice

An account now contains $10,118 and has been accumulating interest at 8% annual interest, compounded continuously, for 6 years. Find the initial deposit. Round your answer to the nearest cent.

• A) $16,351.44
• B) $9,340.09
• C) $6,260.85
• D) $6,376.06

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Definitions:

Digital Accessories

Electronic ancillary equipment that supports and enhances the use of primary digital devices such as computers, smartphones, and tablets.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount, in exchange for immediate money.

Venture Capitalism

A form of private equity financing that investors provide to startup companies and small businesses believed to have long-term growth potential.

Spin-Off

A type of corporate restructuring where a division or subsidiary becomes an independent company.