You Start to Save for a Major Purchase

question 17

Multiple Choice

You start to save for a major purchase. You can invest $500 every three months for 10 years. You are able to earn 8% compounded semi-annually. What is the amount of interest that you earn during the entire term?

• A) $10 072.94
• B) $20 072.94
• C) $30 072.94
• D) $15 072.94
• E) $25 072.94

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Definitions:

Cartilage

A flexible, connective tissue found in various forms in the body, including the joints, ear, and nose.

Formation

The process of being formed or the structure that is formed as a result of certain conditions or processes.

Without

Lacking or in the absence of.

Lordosis

A condition characterized by an excessive inward curvature of the spine, often in the lumbar region, leading to a pronounced "swayback" appearance.