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:

Technological Changes

Innovations or improvements in technology that affect productivity, efficiency, and competitiveness in an industry or economy.

Index Number

A statistical measure that shows changes in a variable or group of variables over time, often used for economic data analysis.

Parity Concept

A principle stating that different currencies should have the same purchasing power in different countries, once adjusted for exchange rates.

Parity Ratio

The ratio between the prices of various goods or services, often used in agriculture and trade to compare values.