Answer the Question. -You Put $422 Per Month in an Investment Plan That

question 209

Multiple Choice

Answer the question.
-You put $422 per month in an investment plan that pays an APR of 3%. How much money will you have after 25 years? Compare this amount to the total amount of deposits made over the time
Period.

• A)$188,148.61; this is $82,648.61 more than the total amount of the deposits.
• B)$188,215.30; this is $61,615.30 more than the total amount of the deposits.
• C)$159,983.01; this is $61,615.30 more than the total amount of the deposits.
• D)$188,282.05; this is $30,032.05 more than the total amount of the deposits.

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Definitions:

Stock Dividends

Dividends paid to shareholders in the form of additional shares of stock instead of cash.

Contributed Capital

The total value of the cash and other assets received by a company from its shareholders in exchange for stock, also known as paid-in capital.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often paying fixed dividends.

Callable Preferred Stock

A type of preferred stock that gives the issuer the right to redeem the stock at a predetermined price after a certain date.