How Much More Would $1,000 Earn in 5 Years in an Account

question 11

Multiple Choice

How much more would $1,000 earn in 5 years in an account compounded continuously than in an account compounded quarterly if the interest rate on both accounts is $3.7%?

• A) $86.40
• B) $51.07
• C) $36.10
• D) $1.02

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Definitions:

Myelin Sheath

The white, fatty material that forms a sheath around the axons of certain nerve cells, which are then called myelinated fibers.

Neurotransmitters

Chemicals released by neurons to transmit signals across a chemical synapse to another neuron or to an effector cell, such as a muscle or gland.

Voltage-Gated

Pertaining to ion channels that open or close in response to changes in membrane potential, playing a critical role in the conduction of electrical signals in neurons.

Neuronal Membrane

The lipid bilayer that surrounds a neuron, maintaining the cell's structure and contributing to its function by regulating the movement of ions and molecules.