V
-An Initial Deposit of $8,000 Is Made into an Account

question 50

Multiple Choice

v
-An initial deposit of $8,000 is made into an account earning 6.5% compounded continuously. Thereafter, money is deposited into the account at a constant rate of $2600 per year. Find the amount in this account at any time t. How much is in this account after 5 years?

• A) A = 60,000 \(e ^ { 0.065 t }\) - 52,000= $31,041.84
• B) A = 52,000 \(e ^ { 0.065 t }\) - 44,000= $27,969.59
• C) A = 48,000 \(e ^ { 0.065 t }\) - 40,000= $26,433.47
• D) A = 44,000 \(e ^ { 0.065 t }\) - 36,000= $24,897.34

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Definitions:

Asset

An economic resource owned or controlled by an individual or business, expected to provide future benefits.

Liability

Any financial debt or obligation that a company owes, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of shareholders in a company.

Balance Sheet

A financial statement that presents a company’s financial position, showing assets, liabilities, and equity at a specific point in time.