Suppose You Have $2,000 and Plan to Purchase a 10-Year

question 117

Multiple Choice

Suppose you have $2,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 6.5% interest,compounded annually.How much will you have when the CD matures?

• A)$3,754.27
• B)$3,941.99
• C)$4,139.09
• D)$4,346.04
• E)$4,563.34

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Definitions:

Critical

Pertains to expressing or involving an analysis of the merits and faults of a concept, piece of work, or idea.

Wisdom

encompasses the quality of having experience, knowledge, and good judgment, enabling profound insights and effective problem-solving.

Knowing

The state or condition of having information, understanding, or familiarity acquired through experience or education.

Buying Power

Buying power refers to the ability of individuals or entities to purchase goods and services, often influenced by income, credit availability, and economic conditions.