Use the Formula $A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$

question 191

Multiple Choice

Use the formula $A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$ to find the total amount of money accumulated at the end of the indicated time period for the following investments: $1,500 for 5 years at 4.5% compounded quarterly. The choices are rounded to the nearest cent.

• A) $507.06
• B) $6,941.67
• C) $1,876.13
• D) $750.45
• E) $4,690.31

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Definitions:

Covariance

A measure of the degree to which two variables move together. In finance, it is used to measure how returns on two assets are related.

Regression Analysis

A statistical method used to examine the relationship between one dependent variable and one or more independent variables.

Slope

In mathematics and economics, the slope represents the rate at which a variable changes in relation to another variable, often depicted as the rise over run on a graph.

Beta

An indicator of the fluctuation or inherent risk of a security or portfolio compared to the overall market.