If You Put $200 in a Savings Account at the Beginning

question 70

Multiple Choice

If you put $200 in a savings account at the beginning of each year for 10 years and then allow the account to compound for an additional 10 years,how much will be in the account at the end of the 20th year? Assume that the account earns 10% and round to the nearest $100.

• A) $8,300
• B) $9,100
• C) $8,900
• D) $9,700

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Definitions:

Student Loan

Financial aid designed to help students pay for tertiary education expenses, such as tuition, books, and living costs, which is required to be repaid with interest.

Interest

Interest refers to the feeling of wanting to learn more about something or to be involved in something.

Scholarships

Financial aid awards designed to support students' education, awarded on the basis of academic or other achievements.

FAFSA

Stands for Free Application for Federal Student Aid; it is a form completed by current and prospective college students in the United States to determine their eligibility for student financial aid.