Peter Invests $100,000 in a 3-Year Certificate of Deposit Earning

question 64

Multiple Choice

Peter invests $100,000 in a 3-year certificate of deposit earning 3.5% at his local bank. Which time value concept would be used to determine the maturity value of the certificate?

• A) Present value of one.
• B) Future value of one.
• C) Present value of an annuity due.
• D) Future value of an ordinary annuity.

---

Definitions:

Global Air Circulation

Describes the large-scale movement of air through the Earth's atmosphere, driven by energy from the sun and the rotation of the Earth, distributing heat and moisture around the globe.

Crustal Displacement

The movement or deformation of the Earth's crust due to tectonic forces, volcanic activity, or other geological processes.

High-Pressure Mass

A large-scale atmospheric high pressure system characterized by sinking air that results in clearer skies and stable weather conditions.

Summer Weather

The condition of the atmosphere during summer, characterized by warmer temperatures, increased daylight hours, and, in many areas, more frequent precipitation and storms.