Find the Accumulated Amount After 7 Years on an Investment

question 122

Multiple Choice

Find the accumulated amount after 7 years on an investment of $2,000 earning an interest rate of 5% per year compounded continuously. Round to the nearest cent.

• A) $2,814.20
• B) $2,838.14
• C) $14,700.00
• D) $14,717.80

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Definitions:

Small Number

A numeric value that is considered to be significantly less in magnitude compared to typical or average values.

Large Number

A numeric value that is significantly above average or expected in size or magnitude.

Porter's Five Forces

A framework analyzing a business's competitive environment based on five key forces: competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entrants.

Zero-Sum Game

A situation in which one participant's gains or losses are exactly balanced by the losses or gains of the other participants.