If $30,000 Is Put in a Savings Account Paying Interest

question 281

Multiple Choice

If $30,000 is put in a savings account paying interest of 4% compounded annually, what amount will be in the account at the end of 5 years?

• A) $25,644
• B) $36,000
• C) $35,096
• D) $36,500

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Definitions:

Vertical Privity

A legal concept relating to the chain of ownership or rights that exist in contracts, specifically in property law and warranties, where obligations are passed down.

Privity Of Contract

A doctrine which states that contracts are binding only upon the parties who enter into them, and only these parties have the right to sue to enforce their terms.

Magnuson-Moss Warranty Act

A federal law in the United States that governs warranties on consumer products, aiming to protect consumers from deceptive warranty practices.

Statute Of Repose

A legal provision that limits the time within which an action can be brought, but unlike statutes of limitations, it is not tied to the discovery of harm but rather to the occurrence of a specific event, typically related to the completion of some act or process.