Seebee Makes Quarterly (End of Period) Payments of $30,000 into a Pension

question 104

Multiple Choice

Seebee makes quarterly (end of period) payments of $30,000 into a pension fund earning 12 percent per year compounded quarterly for 10 years.How much interest will they have earned in 10 years?

• A)$2,262,030
• B)$2,105,880
• C)$905,880
• D)$1,062,030

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values.

Null Hypothesis

In testing, it is the presumption that no effect or no difference exists in the population, serving as the hypothesis that is formally tested.

P-value

A measure in statistical hypothesis testing that helps in determining the significance of results, indicating the probability of observing the data if the null hypothesis is true.

Simple Random Sample

A sample drawn in such a way that every member of the population has an equal chance of being selected.