Question: 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

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 five years, what is the ending balance?

b. If $1,000 is invested at 2% interest, compounded continuously, for five years, what is the ending balance?

c. What is the difference between the two ending balances?

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