Your Bank Offers a 10-Year Certificate of Deposit (CD) That

question 133

Multiple Choice

Your bank offers a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually.If you invest $2,000 in the CD, how much will you have when it 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:

Compensation Systems

Structured plans implemented by businesses to reward and provide financial benefits to employees for their work and performance.

Broadbanding

A method of salary structure that consolidates a large number of pay grades into fewer broad bands to provide greater flexibility in employee movement and compensation.

Red Circle Rates

Pay rates that are higher than the typical range for a job or position, often given to retain employees with critical skills or experience.

Piece Rate

A payment method where workers are compensated based on the amount of work completed or products produced, rather than receiving a fixed hourly wage.