An Initial Deposit of $26,000 Grows at an Annual Rate

Multiple Choice

An initial deposit of $26,000 grows at an annual rate of 7% for 20 years. Compare the final balances resulting from continuous compounding and annual compounding. Round the answers to the nearest cent.

A) $100,610.89 from annual compounding; $105,433.70 from continuous compounding
B) $100,611.80 from annual compounding; $105,435.20 from continuous compounding
C) $100,613.85 from annual compounding; $105,455.20 from continuous compounding
D) $100,608.80 from annual compounding; $105,437.25 from continuous compounding