If You Put $1,000 in a Savings Account at an Interest

question 7

Multiple Choice

If you put $1,000 in a savings account at an interest rate of 10%, how much money will you have in one year?

• A)$1,200.
• B)$909.
• C)$950.
• D)$1,100.

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Definitions:

Constant Growth

A model in finance that assumes a stock’s dividends will continue to grow at a uniform rate indefinitely, used to estimate the stock's current value.

Dividends

Proceeds allocated by a corporation to its share owners, principally derived from the business's earnings.

Rate Of Return

The fiscal growth or shrinkage in an investment's value during a particular lapse of time, marked as a percentage of the initial investment expense.

Annual Dividend

The total amount of dividends that a company pays out to its shareholders over a year.