If $12,000 Is Invested in an Account for Which Interest

question 70

Short Answer

If $12,000 is invested in an account for which interest is compounded continuously, find the amount of the investment at the end of 12 years for the following interest rates.
(a) 2%
(b) 7%

---

Definitions:

Gross Domestic Product (GDP)

The complete financial value of all ultimate products and services generated inside the boundaries of a nation over a particular timeframe.

Consumer Welfare

The overall satisfaction, benefit, or utility received by consumers through the consumption of goods and services.

Gross Domestic Product (GDP)

The sum of the market or financial value of all the finished products and services created within the boundaries of a country over a certain period.

Net Taxes

The amount of taxes paid to the government minus any transfers or subsidies received from the government.