When Interest Is Compounded Continuously, the Rate of Change of the Amount

question 77

Multiple Choice

When interest is compounded continuously, the rate of change of the amount x of the investment is proportional to the amount present. In this case, the proportionality constant is the annual interest rate r (as a decimal) ; that is, . If $2,500 is invested at 7%, compounded continuously, what will be the future value of this investment after 12 years? Round to the nearest cent. ​

• A) $4,600.00
• B) $5,776.80
• C) $5,630.48
• D) $5,708.32
• E) $5,790.92

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Definitions:

Rude

Exhibiting or having a discourteous or impolite demeanor or behavior, often characterized by a lack of respect for others.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response, typically occurring when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Operant Conditioning

An educational method where behavior is altered by the application of rewards or penalties.

Reinforced

In behavioral psychology, refers to any stimulus which strengthens or increases the probability of a specific response.