Justin Invests $4,000 in a Savings Account for Two Years

question 94

Multiple Choice

Justin invests $4,000 in a savings account for two years. The account pays 2% interest compounded annually. How much interest income will Justin earn on this investment?

• A) $80.00
• B) $81.60
• C) $160.00
• D) $161.60

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Definitions:

Planning Budget

A financial plan that estimates future income, expenses, and resources over a specific period, often used for guiding business decisions.

Tenant-Days

A measure used in real estate to quantify the aggregate number of days units are occupied by tenants over a specified period.

Administrative Expenses

Costs related to the general operation of a company that are not directly tied to a specific business activity, including salaries of office staff, depreciation of office equipment, and utilities.

Planning Budget

A forecast of income and expenditures over a specific future period, typically used for managing financial resources and setting financial goals.