Suppose You Have $850 and Plan to Purchase a 5-Year

question 19

Multiple Choice

Suppose you have $850 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest,compounded annually.How much will you have when the CD matures?

• A) $837.91
• B) $1,009.53
• C) $888.39
• D) $858.10
• E) $777.34

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Definitions:

Internal

Pertaining to or situated within something; intrinsic.

External

Originating from outside, not inherent or internal to an entity or individual.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Media Coverage

The reporting, broadcasting, or publishing of news and information by various media outlets, such as television, radio, newspapers, and the internet.