Sue Now Has $125

question 130

Multiple Choice

Sue now has $125.How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?

• A)$205.83
• B)$216.67
• C)$228.07
• D)$240.08
• E)$252.08

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Definitions:

Semi-annual Scholarships

Scholarships awarded twice a year, often to support the educational expenses of students.

Compounded Annually

Pertains to the calculation of interest on both the initial principal and the accumulated interest from previous periods, applied once per year.

Perpetuity

A financial instrument that pays a constant stream of interest payments indefinitely.

Compounded Monthly

Calculating interest on a principal sum along with any accumulated interest of the previous periods with each cycle occurring every month.