Interest rates fluctuate with the economy. In the 1980s, the highest CD interest rate was over 16%.
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Interest rates fluctuate with the economy. In the 1980s, the highest CD interest rate was over 16%. By 2017, the highest CD interest rates were approximately 2%.
a. If $1,000 is invested at 16% interest, compounded continuously, for 5 years, what is the ending balance? Round to the nearest cent.
b. If $1,000 is invested at 2% interest, compounded continuously, for 5 years, what is the ending balance? Round to the nearest cent.
c. What is the difference between the two ending balances?
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Related Book For 
Financial Algebra Advanced Algebra With Financial Applications
ISBN: 9781337271790
2nd Edition
Authors: Robert Gerver, Richard J. Sgroi
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