A greater time horizon will increase interest.
In the context of continuously compounded interest, a longer time period allows for more compounding, thus resulting in a greater amount of interest accrued.
The function A=Pert
, where A is the amount of money in the account after compounding, P is the principal, r is the interest rate expressed as a decimal, and t is time in years is used to calculate the balance in an account with continuously compounded interest.
Select the correct answer from the list.
(1 point)
A greater time horizon will
decrease
interest.
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