If $10,000 Is Deposited in a Savings Account That Pays

question 4

Multiple Choice

If $10,000 is deposited in a savings account that pays 5% annual interest and all of the interest is left in the account, what is the account balance after 7 years?

• A) $10,500
• B) $10,700
• C) $14,025
• D) $14,071

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Definitions:

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.

Project

An organized task or set of activities with a start and end date, aimed at achieving a specific goal or creating a unique product, service, or result.

Net Present Value

The disparity between the current value of incoming cash and the current value of outgoing cash over a certain timeframe.

Salvage Value

The estimated residual value of an asset at the end of its useful life, often considered for depreciation calculations.