How Much Interest Can Be Accumulated During One Year on a $1,000

question 98

Multiple Choice

How much interest can be accumulated during one year on a $1,000 deposit paying continuously compounded interest at an APR of 10%?

• A) $100.00
• B) $105.17
• C) $110.50
• D)$115.70

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Definitions:

Common Cause Variation

Variation that is inherent in a process over time, caused by factors that are consistently and predictably present.

Control Charts

Visual tools used in statistical process control to monitor how a process changes over time, highlighting variations outside of predefined bounds.

Special Cause Variation

A type of variation in a process, identified as being caused by specific identifiable factors, unlike common cause variation which is inherent to the process.

Special Cause Variation

Variation in a process that is caused by specific, identifiable sources, unlike random variation, which is inherent in the process.