Suppose that you were saving money over 5 years to use in a purchase later. You have $1000 to put in the savings. After surveying several banks for savings plans, you found these options. A stands for the amount you will have in the bank after x years.
Option A: Your money would receive simple interest at the end of 5 years.
The formula is A = 1000 + 1000(0.05)x.
Option B: Your money will be compounded continuously.
The formula is A = (1000)(2.71828)(0.05 x).
Option C: You will invest in a CD (Certificate of Deposit) compounded yearly.

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