You Place $1,000 in an Account That Pays 7% Interest

question 8

Multiple Choice

You place $1,000 in an account that pays 7% interest compounded continuously.You plan to hold the account exactly 3 years.Simultaneously,in another account you deposit money that earns 7.40% compounded semiannually.If the accounts are to have the same amount at the end of the 3 years,how much of an initial deposit do you need to make now in the account that pays 7.40% interest compounded semiannually? Do not round your intermediate calculations.

• A) $1,150.77
• B) $882.92
• C) $992.04
• D) $1,220.21
• E) $744.03