Assume ABC Company Deposits $25,000 with First National Bank in an Account

question 50

Multiple Choice

Assume ABC Company deposits $25,000 with First National Bank in an account earning interest at 6% per annum, compounded semi-annually.How much will ABC have in the account after five years if interest is reinvested?

• A)$33,598.
• B)$25,000.
• C)$32,500.
• D)$33,456.

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Definitions:

Standard Deviation

A method to assess how much the values in a dataset diverge from one another.

Normally Distributed

A type of distribution characterized by a symmetrical bell-shaped curve, where the mean, median, and mode are equal.

Mean

The arithmetic average of a set of values, or distribution, calculated by summing the values and then dividing by the number of values.

Standard Normal

A special case of the normal distribution with a mean of zero and a standard deviation of one, commonly used in z-score calculations.