To Save for Retirement, a Couple Deposited $4000 in an Account

question 89

Multiple Choice

To save for retirement, a couple deposited $4000 in an account that pays 7% interest compounded daily.
a) What will the value of the investment be in 5 years?
b) How much interest will be earned in the 5 years?
Round your answer to the nearest cent.

• A) a) $5676.08; b) $1676.08
• B) a) $6811.30; b) $1676.08
• C) a) $5676.08; b) $2681.73
• D) a) $6811.30; b) $2681.73
• E) a) $7946.51; b) $1340.86

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Definitions:

Aversion Therapy

A form of psychological treatment using negative stimuli to reduce or eliminate unwanted behaviors or attractions.

Modeling

The process of learning by observing and imitating the behavior of others.

Observation

Observation involves carefully watching, listening, and noting phenomena as they occur naturally without interfering, as a method of gathering data.

Imitation

The action of using someone or something as a model and replicating their behavior or actions.