Complete the Table for a Savings Account in Which Interest

question 21

Multiple Choice

Complete the table for a savings account in which interest is compounded continuously. $$\begin{array} { | c | c | c | c | } \hline \text { Initial investment } & \text { Annual rate } & \text { Time to double } & \text { Amount after 10 years } \\\hline ....&5.78 \% & .... & \$ 10694.82 \\\hline\end{array}$$ (Round the answer up to two decimal places. )

• A)Initial investment: \(\$ 10000\) Time to double: 13 yr
• B)Initial investment: \(\$ 9000\) Time to double: 10 yr
• C)Initial investment: \(\$ 7000\) Time to double: 12 yr
• D)Initial investment: \(\$ 6,000\) Time to double: 12 yr
• E)Initial investment: \(\$ 8000\) Time to double: 12 yr

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Definitions:

Current-Year Prices

Prices of goods and services measured during the same year they are produced, not adjusted for inflation; also referred to as "nominal prices."

GDP Price Index

A measure of the change in prices of all new, domestically produced, final goods and services in an economy.

Nominal GDP

The gross domestic product measured at current market prices, without taking inflation into account.

GDP Price Index

The GDP Price Index measures the overall change in the prices of all goods and services included in the Gross Domestic Product, showcasing inflation or deflation.