Interest rates fluctuate with the economy. In the 1980s, the highest CD interest rate was over 16%. By 2009, the highest CD interest rates were approximately 5%.
a. If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?
b. If $1,000 is invested at 5% interest, compounded continuously, for five years, what is the ending balance?
c. What is the difference between the two ending balances?