Connie Made Deposits of $2,000 at the Beginning of Each

question 88

Multiple Choice

Connie made deposits of $2,000 at the beginning of each year for four years. The rate she earned is 5% annually. What is the value of Connie's account in four years?

• A)$11,051.00
• B)$8,260.20
• C)$8,260.00
• D)$9,051.20
• E)None of these

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Definitions:

Exponential Distribution

A probability distribution that describes the time between events in a Poisson process, where events occur continuously and independently at a constant average rate.

Mean

The average value of a set of numbers, calculated by adding all the numbers and dividing by the count of numbers.

Exponentially Distributed

A statistical distribution used to model the time between events in a Poisson process, describing the time until some specific event occurs.

Probability

The assessment of the probability of an event happening.