An Investment Is Expected to Pay 5% Per Year Compounded

question 44

Multiple Choice

An investment is expected to pay 5% per year compounded continuously. If you want the value of the investment to be $900,000 after 25 years, how much should you invest initially? Round to the nearest dollar.

• A)$64,464
• B)$128,927
• C)$257,854
• D)$515,709
• E)$429,203

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Definitions:

Warning Coloration

Bright and distinctive patterns or colors on animals that serve to warn predators of their toxicity or unpalatability.

Ecological Niche

The role and position a species has in its environment; how it meets its needs for food and shelter, how it survives, and how it reproduces.

Density-dependent Factor

A factor whose effects on the size or growth of a population vary with the population density.

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An infectious disease caused by the bacterium Yersinia pestis, characterized by swollen lymph nodes, fever, and skin lesions.