Just Deposited $2,500 in a Bank Account That Pays a 4.0

question 114

Multiple Choice

just deposited $2,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly.If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now?

• A)$15,234.08
• B)$16,035.88
• C)$16,837.67
• D)$17,679.55
• E)$18,563.53

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Definitions:

Unconditionally Appropriated

refers to funds or assets that have been allocated without any conditions or restrictions for their use.

Common Carrier

A transportation business that specializes in the transport of goods.

Title

A legal term referring to the rightful ownership of property, including the rights to use, sell, or lease it.

Paid

The state of having received money or compensation for services or goods.