The Future Value of $7,000 Deposited Today and Compounded Semiannually

question 13

Multiple Choice

The future value of $7,000 deposited today and compounded semiannually at an 9% annual interest rate for four years is

• A) $9,955.
• B) $9,520.
• C) $8,100.
• D) $7,920.

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Definitions:

Capital Account

In economics, part of a nation's balance of payments that records all transactions involving the purchase and sale of assets such as stocks, bonds, and real estate.

Financial Accounts

Records that track the financial activities and situation of an entity, including assets, liabilities, equity, income, and expenses.

Surplus

The amount by which the quantity of a good or service supplied exceeds the quantity demanded at a specific price.

Net Investment Income

The total income received from investment assets, such as dividends, interest, and rental income, minus expenses related to the investment.