Suppose When You Are 21 Years Old, You Deposit $1,000

question 134

Multiple Choice

Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays annual compound interest, and you do not withdraw from the account until your retirement at the age of 65, 44 years later. How much more will be in your account if the interest rate is 6 percent rather than 5 percent?

• A)$440
• B)$1,549
• C)$4,428
• D)$8,557