What's the Future Value of $1,200 After 5 Years If

question 110

Multiple Choice

What's the future value of $1,200 after 5 years if the appropriate interest rate is 6%, compounded monthly?

• A) $1,537.69
• B) $1,618.62
• C) $1,699.55
• D) $1,784.53
• E) $1,873.76

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Definitions:

Chi-squared Distribution

A statistical distribution that describes the distribution of the sum of the squares of a set of variables that follow a normal distribution, commonly used in hypothesis testing.

Positively Skewed

A distribution shape where the tail is longer on the right side, indicating that the mean and median are greater than the mode.

Chi-squared Distribution

A probability distribution that describes the distribution of the sum of the squares of variables that are independently distributed according to a standard normal distribution.

Degrees of Freedom

The number of independent values or quantities that can vary in an analysis without violating any constraints.