Suppose You Deposit $1,000 Today in an Account That Pays

question 46

Multiple Choice

Suppose you deposit $1,000 today in an account that pays interest at an annual rate of 5%. What will be the balance in the account at the end of two years if you withdraw only the
Interest paid on the interest at that time?

• A)$1,100
• B)$1,000
• C)$1,103
• D)$1,050

---

Definitions:

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, overseeing both voluntary action and the regulation of involuntary processes.

Electrochemical Impulses

Biological signals that transmit information along neurons, enabling thought, action, and perception.

Autonomic Nervous

A part of the nervous system that controls involuntary bodily functions such as heartbeat, digestion, and breathing.

Parasympathetic

Part of the autonomic nervous system that is responsible for conserving energy and calming the body down after the fight or flight response.