Tracey Deposits $5,000 in a Five-Year Certificate of Deposit Paying

question 66

Multiple Choice

Tracey deposits $5,000 in a five-year certificate of deposit paying 6% compounded semi-annually. How much will Tracey have at the end of the five-year period?

• A) $6,720
• B) $6,690
• C) $6,596
• D) $6,910

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle.

Merchandise Inventory

Merchandise on hand (not sold) at the end of an accounting period.

Notes Receivable

Written promises for amounts to be received in the future, typically with interest, classified as assets on a balance sheet.

Calculating Interest

The process of determining the amount of interest to be added to the principal sum of a loan or deposit.