The text discusses the topic of compounding over a large number of compounding periods.To illustrate,it shows that $1,000 invested at 8% for 40 years (annual compounding)grows to $21,724.But if you could earn 10% instead of 8%,you would earn ________ more at the end of 40 years.
A)$4,431
B)25 percent
C)$23,535
D)$1,250

Question

Quizplus · Accepted Answer

Using the formula for compounding interest, we can calculate that $1,000 invested at 10% annual interest for 40 years will grow to $45,259. This is $23,535 more than the $21,724 that would have been earned at 8% annual interest. Therefore, the correct answer is option C.

The Text Discusses the Topic of Compounding Over a Large