Use the Compound Amount Formula $A = P \left( 1 + \frac { r } { n } \right) ^ { \mathrm { nt } }$

question 45

Multiple Choice

Use the compound amount formula $A = P \left( 1 + \frac { r } { n } \right) ^ { \mathrm { nt } }$ to find the accumulated amount on an investment of $\$ 2000$ , invested at an interest rate of $6 \%$ for 10 years, if the interest is compounded quarterly.

• A)$3,628.04
• B)$20,300.00
• C)$16,543.61
• D)$3,612.22

---

Definitions:

Stock Held

Shares of a company that are owned by an individual or entity, representing a portion of ownership in that company.

Initial Offering

The first sale or issuance of stock by a company to the public, typically referred to as an Initial Public Offering (IPO), marking a company's transition from private to public.

Sarbanes-Oxley Act

A law passed by the U.S. Congress in 2002 aimed at protecting investors from fraudulent financial reporting by corporations.

Securities Act of 1933

United States federal law enacted as a result of the stock market crash of 1929, which requires securities sold to the public to be registered and regulated.