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

question 81

Multiple Choice

The future value of $7,000 deposited today and compounded quarterly at a 16% annual interest rate for five years is

• A) $14,724.
• B) $14,702.
• C) $8,517.
• D) $15,338.

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Definitions:

Ethical Obligation

A moral responsibility to act in accordance with ethical principles.

Firm Offer

A legal concept in contract law where an offeror is bound to keep an offer open for a specified period, making it irrevocable even without consideration.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another when the latter has relied on that promise to their detriment.

Detrimental Reliance

A legal principle where a party suffers a loss due to their reliance on a promise or agreement that is not fulfilled by the other party.