If You Deposit $1000 into an Account That Pays 3

question 38

Essay

If you deposit $1000 into an account that pays 3% compounded quarterly, what would be the value in the account after 10 years?

---

Definitions:

Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, set by central banking authorities.

Gold Coins

A type of currency made from gold, used historically as a medium of exchange and a store of value.

Small Denomination Time Deposits

Savings accounts or certificates of deposit in banks that have smaller balances and are subject to a specified time frame before withdrawal.

Large Denomination Time Deposits

High-value deposits in a bank with fixed terms, which typically offer higher interest rates than regular savings accounts.