Fred Deposited $5,000 in an Account That Promised a Nominal

question 26

Multiple Choice

Fred deposited $5,000 in an account that promised a nominal interest rate of 8% compounded continuously for his daughter who will be going to college in 18 years. How much will she have in the account in 18 years?

• A) $19,980
• B) $20,054
• C) $21,103
• D) $21,694

---

Definitions:

Hypothesis Test

A statistical method that uses sample data to evaluate a hypothesis about the properties of a population.

Commuted

Refers to the action of commuting, which is traveling from one's home to work or school, or it can refer to changing a legal penalty to a less severe one.

Curriculum

A structured set of educational and training materials provided in schools, universities, or workplaces, covering all the subjects or skills to be taught.

Hypothesis

A supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation, often used as a precursor to more detailed experiments or studies.