If a Lump-Sum Deposit of $8,000 Is Left in a Bank

question 63

Multiple Choice

If a lump-sum deposit of $8,000 is left in a bank for 12 years at 9%, compounded annually, what will the ending balance be? (Round the answer to the nearest dollar.)

• A) $11,600
• B) $16,640
• C) $22,501
• D) $52,938
• E) $96,000

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Definitions:

Ionic Compounds

Chemical compounds composed of ions held together by electrostatic forces known as ionic bonding.

Dissolve

The process of a substance becoming incorporated into a liquid to form a solution, typically through physical and chemical interactions.

Dissociate

Ionization in which ions are dissolved in water and the cations and anions are surrounded by water molecules.

Charge

In physics, charge refers to a property of matter that causes it to experience a force when near other electrically charged matter; there are two types, positive and negative, which attract each other.