What EAR Is Being Earned on a Deposit of $5,000

question 55

Multiple Choice

What EAR is being earned on a deposit of $5,000 made ten years ago today if the deposit is worth $9,948.94 today? The deposit pays interest semi-annually.

• A)3.56 percent
• B)6.76 percent
• C)7.00 percent
• D)7.12 percent $9,948.94 = $5,000

---

Definitions:

Taxpayer

An individual or entity that is obligated to pay taxes to a federal, state, or local governmental agency.

Congress

The legislative body of the United States federal government, consisting of two houses: the Senate and the House of Representatives.

Tax Credits

Amounts that can be subtracted directly from taxes owed to the government, reducing the total tax liability.

Additional Revenues

Income received by a business or organization that is supplementary to its primary revenue sources, often from non-core business activities.