An Initial Deposit of $5000 Grows at an Annual Rate

question 113

Short Answer

An initial deposit of $5000 grows at an annual rate of 8.9% for 5 years. Compare the final balances resulting from annual compounding and continuous compounding. Please round the answers to the nearest cent. $__________ from annual compounding. $__________ from continuous compounding.

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Definitions:

Amounts Being Produced

Refers to the volume or quantity of goods and services that are generated or manufactured by a business or economy over a specific time period.

Social Security Check

A monthly payment issued by the government to eligible individuals, typically retirees, disabled persons, and survivors of deceased workers, as part of a social insurance program.

U.S. GDP

The total market value of all goods and services produced within the United States in a given year.

Groceries

Items of food and other household necessities that are purchased regularly for consumption.