Calculate Interest Earned

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Questions and Answers

What is the principal amount in the given scenario?

  • $25,000
  • $15,000
  • $30,000
  • $20,000 (correct)

What is the interest rate in the given scenario?

  • 2.6%
  • 3.6% (correct)
  • 4.6%
  • 5.6%

For how many years is the interest compounded continuously in the given scenario?

  • 5 years (correct)
  • 4 years
  • 6 years
  • 3 years

What is the formula used to calculate interest compounded continuously?

<p>Pe^(rt) (A)</p> Signup and view all the answers

If the interest rate were to decrease by 1%, how would the interest earned change?

<p>It would decrease (C)</p> Signup and view all the answers

What would be the interest earned if the interest was compounded annually instead of continuously?

<p>It would be less (D)</p> Signup and view all the answers

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