What Is the Future Value of $12 000 on Deposit

question 6

Multiple Choice

What is the future value of $12 000 on deposit for four years at 7.00% per annum simple interest?

• A) $3360.00
• B) $12 336.00
• C) $15 360.00
• D) $15 729.55

---

Definitions:

Central Limit Theorem

A statistical theory that states that, given a sufficiently large sample size, the sampling distribution of the mean for a variable will approximate a normal distribution, regardless of the variable's distribution in the population.

Sampling Distributions

The probability distribution of a statistic obtained from multiple random samples of a population.

Normally Distributed

Refers to a bell-shaped distribution that is symmetrical about its mean, often used as a model in statistics for real-valued random variables.

Standard Deviation

An indicator used to determine the extent of fluctuation or scatter among data points in a collection.