Calculate the Maturity Value of a Five-Year, $400,000 Guaranteed Investment

question 4

Multiple Choice

Calculate the maturity value of a five-year, $400,000 Guaranteed Investment Certificate at accumulating at 6% compounded quarterly.

• A) $538,742
• B) $696,988
• C) $880,000
• D) $903,443
• E) $994,001

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Definitions:

Types of Saving

Various forms in which individuals or entities can save their money, such as bank deposits, investments, or pension funds.

Corporate Bonds

Debt securities issued by corporations to fund their operations, expansions, or projects, carrying a promise to return the principal along with agreed-upon interest payments.

Bondholders

Individuals or entities that hold debt securities issued by corporations or governments, entitled to receive interest payments and the return of principal.

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership of the company.