You Are Investing $\$ 1000$ In a Certificate of Deposit for 2 Years and You

question 84

Multiple Choice

You are investing $\$ 1000$ in a certificate of deposit for 2 years and you want the interest for that time to exceed $\$ 50$ . The interest is compounded annually. What interest rate should you have? Hint: Solve the inequality $1000 ( 1 + r ) ^ { 2 } > 1,050$ . Round your answer to one decimal place.

• A) \(3.8 \%\)
• B) \(3.5 \%\)
• C) \(4.8 \%\)
• D) \(2.5 \%\)
• E) \(1.1 \%\)

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Definitions:

Primogeniture

A legal or social system in which the firstborn child, specifically the eldest son, inherits the family estate or title.

Eldest Son

The firstborn male child in a family, often subject to specific rights, responsibilities, or inheritances in various cultures.

Inheritance

The practice of passing on property, titles, debts, rights, and obligations upon the death of an individual.

Castilian Monarchy

Refers to the monarchy of Castile, a significant kingdom in the Iberian Peninsula that played a central role in the unification of Spain and the Spanish Empire.