Suppose the $2500 Is Deposited in a Savings Account Paying $\mathrm { e } ^ { 5 }$

question 30

Multiple Choice

Suppose the $2500 is deposited in a savings account paying 5% interest, compounded continuously. What will be the average value of the account during the next 10 years?

• A) 250( \(\mathrm { e } ^ { 5 }\) - 1)
• B) 2500( \(e ^ { 50 }\) - 1)
• C) 50,000( \(e ^ { 0.5 }\) - 1)
• D) 50,000( \(e ^ { 0.05 }\) - 1)
• E) none of these

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