An Investment of $7,000 Earns 6% Interest, Compounded Continuously

question 24

Multiple Choice

An investment of $7,000 earns 6% interest, compounded continuously. What will the investment be worth in 8 years?

• A) $11,293.52
• B) $11,313.71
• C) $11,309.36
• D) $11,312.52
• E) $11,301.86

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Definitions:

Cash Register Tape

A continuous roll of paper that records the transactions processed through a cash register, serving as a transactional record.

Cash Over and Short

An account used to report the discrepancies between the physical cash on hand and the recorded amounts in the books.

Cash Sales

Transactions where payment is made by the customer at the time of purchase, involving immediate transfer of cash.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered or used but not yet paid for.