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:

Tariffs

Taxes imposed on imported goods and services, which can affect trade dynamics between countries.

Trade Barriers

Measures implemented by governments to regulate or limit international trade, including tariffs, quotas, and embargos, to protect domestic industries.

Power Distance

The degree to which a culture accepts unequal distribution of power.

Inequality

The uneven distribution or imbalance of resources, opportunities, and rights among individuals or groups, leading to disparities in wealth, status, and power.