Use the Formula $A = p e ^ { r t }$

question 124

Multiple Choice

Use the formula $A = p e ^ { r t }$ to find the total amount of money accumulated at the end of the indicated time period by compounding continuously: $4,600 for 6 years at 3%. The choices are rounded to the nearest cent.

• A) $9,362.24
• B) $3,671.47
• C) $8,260.80
• D) $5,507.20
• E) $3,239.53

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Definitions:

Consumer Surplus

Consumer Surplus is the difference between the highest price a consumer is willing to pay for a good or service and the actual price they pay.

Tax

A mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Reduction

The act of making something smaller or less in amount, degree, or size.

Sellers

Individuals or entities that offer goods or services for sale to consumers or other businesses, participating in economic transactions.