You Are Considering Investing in a Bank Account That Pays

question 161

Multiple Choice

You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly.If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $150,000?

• A) 39.60
• B) 44.00
• C) 48.40
• D) 53.24
• E) 58.57

---

Definitions:

Arrival Rate

In operations, it refers to the frequency at which tasks, customers, or entities arrive at a system or facility, typically measured in units per time period.