A 4 Year Certificate of Deposit Pays an Annual Rate

question 30

Multiple Choice

A 4 year certificate of deposit pays an annual rate of 8%, compounded daily. The maximum allowable deposit is $17,000. What is the most interest a depositor can earn from the CD? Round the result to the nearest cent.

• A) $6,410.35
• B) $6,510.45
• C) $6,310.25
• D) $6,400.34
• E) $6,420.36

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Definitions:

Accommodation

In Piaget’s theory, the process by which schemas are modified or new schemas created in light of experience.

Sensory Awareness

The recognition and interpretation of sensory stimuli based primarily on touch, sight, sound, taste, and smell.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a concept developed during early childhood.

Cognitive-developmental Perspective

A psychological approach focusing on how cognitive abilities develop through different stages in life.