3
QuizMultiple Choice

Modeling with Exponential and Logarithmic Equations

Question 3 • VA-Mathematical Analysis

A money market account offers 5% annual interest compounded continuously. To achieve a $50,000 balance in 12 years, what initial deposit is required? (Assume no future deposits or withdrawals.)

Answer
A
approximately $20,000
B
approximately $27,440
C
approximately $27,840
D
approximately $30,330
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