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A $200 Deposit Today That Earns an Annual Interest Rate

question 12

Multiple Choice

A $200 deposit today that earns an annual interest rate of 5% is worth how much at the end of two years? Assume all interest received at the end of the first year is reinvested the second year.


Definitions:

Secretary of Defense

The head of the Department of Defense and a key adviser to the President, responsible for the formulation and execution of general defense policy and management of all branches of the U.S. armed forces.

George H.W. Bush

The 41st President of the United States, serving from 1989 to 1993, known for his leadership during the end of the Cold War and the Gulf War.

Berlin Wall

A fortified barrier that divided Berlin from 1961 to 1989, built by the German Democratic Republic (East Germany) to prevent East Germans from fleeing to West Berlin and West Germany.

East Germany

Officially the German Democratic Republic (GDR), a state that existed from 1949 to 1990 in the eastern part of Germany, established after World War II and during the Cold War.

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