A Deposit of $10,000 Increased to $12,500 in 5 Years

question 3

Multiple Choice

A deposit of $10,000 increased to $12,500 in 5 years. Determine the annual rate of interest used and calculate the balance at the end of year four.

• A) $11,954
• B) $12,254
• C) $13,954
• D) $14,254
• E) $15,954

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Definitions:

Severance Packages

Financial compensation provided to employees upon termination of employment, generally based on factors like length of service and position level.

Termination Benefits

Payments and services provided to employees upon their leaving the company, which may include severance pay, continued health insurance, and other perks.

Nonmandatory Benefits

Employee benefits that are not legally required but offered by employers to attract and retain employees, such as health insurance, retirement plans, and flexible working hours.

Part-time Employees

Workers who are employed for fewer hours than the standard full-time workweek, often receiving prorated wages and benefits.