Suppose You Have $2,000 and Plan to Purchase a 10-Year

question 117

Multiple Choice

Suppose you have $2,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 6.5% interest,compounded annually.How much will you have when the CD matures?

• A)$3,754.27
• B)$3,941.99
• C)$4,139.09
• D)$4,346.04
• E)$4,563.34

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Definitions:

Compensation

Payment or benefit provided to someone in exchange for services rendered or as restitution for loss or injury.

Mortuary

A facility where the bodies of deceased persons are prepared for burial or cremation and where funerals might be conducted.

Legal Capacity

Legal capacity is the ability of an individual or entity to enter into legally binding contracts, sue or be sued, and make decisions that carry legal consequences.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and other operational details among partners in a business venture.