Suppose You Earn Annually Compounding Interest of 10% (Per Year)

question 5

Multiple Choice

Suppose you earn annually compounding interest of 10% (per year) on an initial investment of $1,000.Rounded to the nearest 100, what will your balance in 10 years be?

• A)$11,000
• B)$5,200
• C)$2,600
• D)$2,000
• E)$1,600
• F)None of the above

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Definitions:

Design Services

Professional services that envision and plan the construction, functionality, and aesthetics of various projects or components.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Equity, representing the relationship between an entity’s resources and how those resources are financed.

Cash Dividends

Payments made by a corporation to its shareholder members, usually derived from the company’s profits.

Purchase

The act of obtaining goods or services in exchange for money, which can be recorded as an asset or expense depending on its use.