How Much Interest Can Be Accumulated During One Year on a $1,000

Multiple Choice

How much interest can be accumulated during one year on a $1,000 deposit paying continuously compounded interest at an APR of 10 percent?

A) $100.00
B) $105.17
C) $110.50
D) $115.70 Interest = $1,000 x e.¹ - $1,000
= $1,000 x 1.1052 - $1,000
= $1,105.17 - $1,000