If a Term Deposit Offers an Interest Rate of 10

question 31

Multiple Choice

If a term deposit offers an interest rate of 10% p.a. ,compounding continuously,how much will an initial investment of $50 000 be worth after one year?

• A)$55 258
• B)$135 914
• C)$62 519
• D)$98 352

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Definitions:

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.

Specialize

To concentrate on a particular area of study, work, or production, often to gain higher proficiency or efficiency.

Shirt

A shirt is a garment covering the upper body, with sleeves and typically a collar and buttons down the front, worn by both men and women.

Pie

A metaphorical representation of a total market or economy, which can be divided among participants.