Assume That on 1 January 2011 You Deposit $1000 into a Savings

question 54

Multiple Choice

Assume that on 1 January 2011 you deposit $1000 into a savings account that pays 8% p.a.If the bank compounds interest annually,how much will you have in your account on 1 January 2014?

• A)$1292.43
• B)$1357.61
• C)$1259.71
• D)$1439.16

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Definitions:

Mean

The average of a set of numerical values, calculated by dividing the sum of the values by the number of values.

Normal Distribution

A bell-shaped frequency distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A statistic that measures the dispersion or spread of a set of data points relative to its mean.

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of the numbers.