Suppose You Put $475 into a Bank Account Today

question 87

Multiple Choice

Suppose you put $475 into a bank account today. Interest is paid annually and the annual interest rate is 4.25 percent. The future value of the $475 after 3 years is

• A)$419.24.
• B)$441.87.
• C)$610.57.
• D)$538.17.

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Definitions:

Average Tax Rate

The proportion of total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Total Income

The sum of all earnings by an individual or entity from various sources, including wages, investments, and other forms of revenue, before taxes and deductions.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), often expressed as a percentage.

Total Income

The sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings received by individuals or entities within a specified period.