A $10,000 Deposit Along with Quarterly Contributions of $150 Accumulates

question 225

Multiple Choice

A $10,000 deposit along with quarterly contributions of $150 accumulates to $18,000 in 5 years. Determine the nominal rate of interest if interest is compounded annually.

• A) 7.58%
• B) 8.58%
• C) 9.68%
• D) 10.28%
• E) 13.28%

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Definitions:

Finite Arrival Population

A scenario in queueing theory where the number of potential arrivals to a system is limited or fixed.

Copy Machines

Devices used for reproducing documents or images by means of photocopying.

Finite Population

A set of data or a population that is limited or fixed in size, often used in statistical analysis to apply different formulae compared to an infinite population.

Average Service Time

The mean duration needed to complete service for a customer or process a task, commonly used in the evaluation of service and operational efficiency.