You Save $53 Per Month for 21 Years in a Savings

question 56

Multiple Choice

You save $53 per month for 21 years in a savings account earning 2% interest compounded monthly. The total amount in the account after 21 years will be $$53 \left[ \left( 1 + \frac { 0.02 } { 12 } \right) ^ { 252 } - 1 \right] \left( 1 + \frac { 12 } { 0.02 } \right)$$ . How much money is in the account after 21 years? Round your answer to two decimal places.

• A)$48,462.10
• B)$13,641.56
• C)$16,609.10
• D)$14,867.44
• E)$34,698.81

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Definitions:

Ethically Allowed

Actions or decisions that are permitted based on moral or ethical principles.

Unocal Rule

A legal standard from a Delaware Supreme Court case that gives boards of directors a framework for resisting takeover bids.

Business Judgment Rule

A legal principle that shields corporate directors and officers from liability for decisions made in good faith but that ultimately resulted in loss or damage.

Takeover Bid

An offer made to acquire a controlling interest in a company, often against the wishes of its management.