You Invest $1,000 at a Variable Rate of Interest

question 68

Multiple Choice

You invest $1,000 at a variable rate of interest.Initially the rate is 4% compounded annually for the first year,and the rate increases one-half of one percent annually for five years (year two's rate is 4.5%,year three's rate is 5.0%,etc.) .How much will you have in the account after five years?

• A) $1,276
• B) $1,359
• C) $1,462
• D) $1,338

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Definitions:

Necessary Reagents

Specific substances or chemicals required to carry out a chemical reaction.

Williamson Ether Synthesis

An organic reaction forming an ether by reacting an organohalide with an alcohol, typically using a base to deprotonate the alcohol, facilitating nucleophilic attack.

Major Organic Product

The principal product of an organic reaction, often the one in greatest yield or under thermodynamic control.

Joint Probability Distribution

A statistical measure that calculates the likelihood of two events happening simultaneously and to what extent they are associated.