2
QuizMultiple Choice

Types of Compound Interest — Quiz

Question 2 • Advanced Financial Algebra

Marilyn deposits $1,755 in a bank offering an annual interest rate of 5.68% If the interest is compounded continuously and Marilyn keeps the money in the bank for 4 years, how much will Marilyn have at the end of the period? A=P⁢e^r⁢t

Answer
A
$1,795.33
B
$2,202.67
C
$17,021.36
D
$1,758.99

Explanation

Use the continuous compounding formula A = Pe^(rt), with P = 1,755, r = 0.0568, and t = 4. Then A = 1,755e^(0.0568 × 4) = 1,755e^0.2272 ≈ $2,202.67. Marilyn will have about $2,202.67, choice B.

AI-written and checked against the verified answer.

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