Justin Invests $4,000 in a Savings Account for Two Years

question 71

Multiple Choice

Justin invests $4,000 in a savings account for two years. The account pays 2% interest compounded annually. How much interest income will Justin earn on this investment?

• A) $81.60
• B) $160.00
• C) $80.00
• D) $161.60

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Definitions:

Shoemakers' Industry

A sector focused on the production and repair of shoes, which historically involved skilled craftsmanship and has evolved with industrialization and globalization.

Economic Depression

A long-term downturn in economic activity characterized by high unemployment, scarce credit, reduced output and investment, and deflation.

Great Uprising

Refers to a significant revolt or movement, often in a social or political context, that leads to profound change or upheaval.

Wage Cuts

Reductions in the amount of pay that employees receive, often implemented by employers during financial difficulties.