For Accounts Where Interest Is Compounded Continuously, the Amount a Accumulated

question 64

Multiple Choice

For accounts where interest is compounded continuously, the amount A accumulated or due depends on the principal p, interest rate r and the time t in years according to the formula A = pe^rt. How long would it take $4000 to double if it were invested at 4.5%? Round your answer to the nearest tenth of a percent.

• A) 15.1 years
• B) 15.2 years
• C) 15.3 years
• D) 15.4 years

---

Definitions:

Percentage Method

An IRS method for calculating the amount of taxes to withhold from an employee's paycheck based on income brackets.

Federal Income Tax

An annual charge imposed by the U.S. government on the income of individuals, businesses, trusts, and various legal bodies.

Exemptions

Deductions allowed by tax authorities on a taxpayer's income, often based on the number of dependents, reducing the taxable income.

W-2's Filing

The process of submitting the Form W-2, which reports an employee's annual wages and the amount of taxes withheld from their paycheck, to the IRS.