10
QuizMultiple Choice

Types of Compound Interest — Quiz

Question 10 • Advanced Financial Algebra

Zendaya deposits $4,125 in a bank offering an annual interest rate of 2.35% If the interest is compounded continuously and Zendaya keeps the money in the bank for 1 year, how much will Zendaya have at the end of the period? A=P⁢e^r⁢t

Answer
A
$4,134.71
B
$43,252.98
C
$4,223.09
D
$5,217.75

Explanation

For continuous compounding, use A = Pe^(rt), with P = 4,125, r = 0.0235, and t = 1. Thus A = 4,125e^(0.0235) ≈ $4,223.09. Zendaya will have $4,223.09, which is choice C.

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