
Continuous Interest and Retirement Accounts

Interactive Video
•
Mathematics, Business
•
10th - 12th Grade
•
Hard

Ethan Morris
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the assumed continuous interest rate for the retirement account?
3%
4%
5%
6%
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How much of the annual income is deposited into the retirement account each year?
8%
7%
6%
5%
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the formula for the account balance with continuous interest?
y(T) = P * (1 + RT)
y(T) = P * e^(R/T)
y(T) = P * e^(RT)
y(T) = P * (1 + R)^T
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the derivative of the continuous interest formula represent?
The future value of the account
The total interest earned
The change in balance over time
The initial principal amount
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the continuous growth rate of the annual income?
5%
4%
3%
2%
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How is the deposit amount adjusted for continuous growth?
It is doubled every year
It increases by 4% each year
It decreases by 4% each year
It remains constant
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the formula used to express the growing deposit amount?
4,000 * (1 + 0.04)^t
4,000 * e^(0.04/t)
4,000 * e^(0.04*t)
4,000 * (1 + 0.04*t)
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