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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Definitions:

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present.

Increased Significantly

A term used to describe a situation where a change or difference is both statistical and meaningful in magnitude, indicating a departure from chance.

Significantly Reduced

A phrase typically used in research to indicate a notable decrease in the magnitude or quantity of a measured variable.

Not Affected

Remaining unchanged or undisturbed by external influences or events.