After 2 Years, an Investment of $1500 Compounded Annually at Interest

question 101

Multiple Choice

After 2 years, an investment of $1500 compounded annually at interest rate r will yield $1500 ( 1 + r ) ^ { 2 }$ . Find this product.

• A) \(r ^ { 2 } + 2 r + 1500\)
• B) \(1500 r ^ { 2 } + 3000 r + 1500\)
• C) \(1500 r ^ { 2 } + 1500 r + 1500\)
• D) \(1500 r ^ { 2 } + 1500\)
• E) \(3000 r ^ { 2 } + 1500 r + 1500\)

Grasp the concept and elements of work engagement.

Assess the economic impact of mental illness on Canadian businesses.

Acknowledge the various approaches to improving workplace mental health and safety.

Understand the concept and benefits of specialization and division of labor in an economy.

---

Definitions:

Prior Service Cost

Costs that arise when a pension plan is amended to increase benefits for employee service provided in prior periods, recognized over the service periods of affected employees.

Unrecognized Prior Service Cost

Costs associated with retroactive benefits granted in pension plans, which are not immediately recognized as an expense but are amortized over time.

Years-Of-Future-Service Method

An actuarial technique used to calculate pension benefits, taking into account the expected years of service remaining for an employee.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated using a formula that considers several factors, such as length of employment and salary history, with the employer bearing the investment risk.