How Much Interest Will Be Earned in an Account into Which

question 60

Multiple Choice

How much interest will be earned in an account into which $1,000 is deposited for one year with continuous compounding at a 13 percent rate?

• A)$130.00
• B)$138.83
• C)$169.00
• D)$353.34 1000 (e.¹³) =
• 1000 x 1.1388 = $1,138.83

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