Kaeli Company Will Invest $10,000 a Year for 5 Years

question 9

Multiple Choice

Kaeli Company will invest $10,000 a year for 5 years, with all investments at yearend. If the fund earns 10% compound interest, what amount will be in the fund at the end of 5 years?

• A)$60,000
• B)$61,051
• C)$65,000
• D)$67,156

---

Definitions:

Expected Value

A statistical measure that calculates the average outcome of a random variable after many repetitions of an experiment.

Random Variable

A variable that can take numeric values, which are the results of a random event.

Mean

A measure of central tendency, calculated by adding all the values in a dataset and dividing by the number of values.

Continuous Probability Distributions

Mathematical functions that assign probabilities to every possible value of a continuous random variable.