Your Bank Offers a 10-Year Certificate of Deposit (CD) That

question 133

Multiple Choice

Your bank offers a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually.If you invest $2,000 in the CD, how much will you have when it matures?

• A) $3,754.27
• B) $3,941.99
• C) $4,139.09
• D) $4,346.04
• E) $4,563.34

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Definitions:

Remuneration Expense

Represents the total cost incurred by an organization for paying its employees, including wages, salaries, bonuses, and benefits.

Vesting Period

The period of time before an employee gains unconditional ownership of certain benefits or assets, such as stock options or employer contributions to a retirement plan.

Option-pricing Model

A mathematical model used to estimate the value of options, taking into account the underlying asset's price, volatility, time until expiration, and other factors.

AASB 2

An accounting standard that specifies the financial reporting requirements for entities to reflect the effects of transactions involving share-based payment transactions.