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advanced-mathAn investment of $8,000 at 5.25% compounded continuously for 10 years. Approximate value?
Continuous: , use
A
$13,520
B
$12,400
C
$14,000
D
$13,000
Correct Answer: A
Choice A is the correct answer. Use continuous compounding formula.
- Formula: .
- Given: .
- Calculate: .
💡 Strategic Tip: Continuous compounding uses instead of .
Choice B is incorrect because the multiplier is wrong. Choice C is incorrect because this is too high. Choice D is incorrect because the calculation doesn't match.