Find the Amount of Money in an Account After 10

question 251

Multiple Choice

Find the amount of money in an account after 10 years if $2100 is deposited at 4% annual interest compounded annually.

• A) $3126.61
• B) $3130.75
• C) $3120.49
• D) $3108.51

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Definitions:

Dividends Expected

The forecasted payments made by a corporation to its shareholders, typically derived from the company's profits.

Constant Dividend

A dividend policy in which a company pays a fixed dividend per share, unaffected by its earnings volatility.

Rate of Return

The increase or decrease in the value of an investment during a predetermined timeframe, represented as a proportion of the investment's original price.

Dividend Next Year

The projected amount of money to be paid to shareholders from a company's earnings in the forthcoming fiscal year.