If You Left $2,500 on Deposit with a Bank Promising

question 132

Multiple Choice

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:

• A)$2,800
• B)$18,420
• C)$46,050
• D)$250,750

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Definitions:

Not-For-Profit Organization

An organization that operates for purposes other than making a profit, often focusing on social, educational, or charitable activities.

Income Statement

A financial statement that reports a company's financial performance over a specific period, detailing revenues, expenses, and net income or loss.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Balance Sheet

A summary report of a company's financial position, detailing assets, liabilities, and equity of shareholders at a certain moment.