You place $1,000 in an account that pays 7.00% interest compounded continuously. You plan to hold the account exactly 3 years. Simultaneously, in another account you deposit money that earns 7.40% compounded semiannually. If the accounts are to have the same amount at the end of the 3 years, how much of an initial deposit do you need to make now in the account that pays 7.40% interest compounded semiannually? Do not round your intermediate calculations.
A. $1,150.77
B. $882.92
C. $992.04
D. $1,220.21
E. $744.03
Answer: C
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