How Much Interest Will Be Earned in an Account into Which

question 71

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% rate?

• A) $130.00
• B) $138.83
• C) $169.00
• D) $353.34

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Definitions:

Self-Serving Bias

The common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors when judging others' behavior.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Bay of Pigs

The site of a failed invasion of Cuba in 1961, which was sponsored by the United States and intended to overthrow Fidel Castro.