An Investment Is Expected to Pay 11% Per Year Compounded

question 21

Multiple Choice

An investment is expected to pay 11% per year compounded continuously.If you want the value of the investment to be $900,000 after 25 years, how much should you invest initially? Round to the nearest dollar.

• A) $14,384
• B) $28,768
• C) $57,535
• D) $115,070
• E) $368,953

---

Definitions:

Equilibrium

A state in an economic model where supply equals demand, leading to a stable market condition where prices are unlikely to change.

High Quality

Reflecting a high level of excellence or superior standard in terms of durability, performance, or accuracy.

Low Quality

Describes products or services that do not meet the standard performance expectations or durability.

Equilibrium

A state in a market system where supply equals demand, and no economic forces are acting to change the price or quantity.