What Would Be the Future Value of a CD of $1,000

question 143

Multiple Choice

What would be the future value of a CD of $1,000 for two years if the bank offered a 10% interest rate compounded semiannually?

• A) $1,720
• B) $1,960
• C) $1,200
• D) $1,216

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Definitions:

Intent

Intent refers to the purpose or determination with which an individual acts, which is often a key factor in determining the legal consequences of an action.

Tort Law

An area of law that deals with civil wrongs, not arising from contractual obligations, for which the injured party may receive compensation.

Evil Motive

The intention to cause harm or perform actions for malicious reasons, often underlying criminal or unethical behavior.

Punitive Damages

Monetary compensation awarded in a lawsuit that goes beyond what is necessary to compensate the plaintiff and is intended to punish the defendant for egregious behavior and deter similar conduct in the future.