On Each of Two Days (January 1, 2005 and January $2500\left(1+\frac{0.06}{4}\right)^{4}$

question 62

Multiple Choice

On each of two days (January 1, 2005 and January 1, 2006) , a person deposits $2500 in a savings bank.The bank deposits interest in the account at a rate of 6%, compounded 4 times per year.Choose the sum that gives the size of the bank account at the end of 2006.

• A) \(2500\left(1+\frac{0.06}{4}\right)^{4}\)
• B) \(2500+\left(2500\left(1+\frac{0.06}{4}\right)^{4}\right)\)
• C) \(\left[2500+\left(2500\left(1+\frac{0.06}{4}\right)^{4}\right)\right]\left(1+\frac{0.06}{4}\right)^{4}\)
• D) \(2500\left(1+\frac{0.06}{4}\right)^{4}+\left[2500+\left(2500\left(1+\frac{0.06}{4}\right)^{4}\right)\right]\)

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