How Long Must $4400 Be in a Bank at 3

question 118

Multiple Choice

How long must $4400 be in a bank at 3% compounded annually to become $5913.23? (Round to the nearest year.)

• A) 12 yr
• B) 9 yr
• C) 11 yr
• D) 10 yr

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Definitions:

Deposit Today

The act of placing money into a financial account or investment vehicle with the expectation of future returns.

Earn

To earn is to receive money or its equivalent in return for labor, services, or investments made.

Present Value

A calculation that determines the current worth of a future sum of money or stream of cash flows, given a specific rate of return.

Annuity

A fiscal product offering a consistent payout pattern, mainly aimed at supplying funds for individuals in retirement.