Complete the Table for a Savings Account in Which Interest

question 19

Multiple Choice

Complete the table for a savings account in which interest is compounded continuously. $$\begin{array} { | c | c | c | c | } \hline \text { Initial investment } & \text { Annual } \% \text { rate } & \text { Time to double } & \text { Amount after 10 years } \\\hline { \$ 500 } & 9 \frac { 1 } { 2 } \% & ....& .....\\\\\hline\end{array}$$
(Round the answer up to two decimal places. )

• A)Time to double: \(7.30 y r\) Amount after 10 years: \(\$ 1292.85\)
• B)Time to double: \(7.30 y r\) Amount after 10 years: \(\$ 1542.85\)
• C)Time to double: \(2.30 y r\) Amount after 10 years: \(\$ 1292.85\)
• D)Time to double: \(7.30 y r\) Amount after 10 years: \(\$ 1792.85\)
• E)Time to double: \(12.30 \mathrm { yr }\) Amount after 10 years: \(\$ 1292.85\)

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Definitions:

Debit

An accounting entry that represents an increase in assets or expenses, or a decrease in liabilities or equity, recorded on the left side of the accounting ledger.

Credit

The provision of goods, services, or money with the expectation of future payment, or an entry in accounting that increases liabilities and decreases assets.

Transactions

Financial events that involve the transfer of value between two parties, recording in accounting records.

Source Document

An original record or document that contains the details of a business transaction, used as the basis for recording and validating financial data.