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:

Reasonable Care

The degree of caution and concern an ordinarily prudent person would use in similar circumstances.

Compensatory Damages

Financial compensation awarded to a plaintiff to reimburse for loss, injury, or harm suffered as a direct result of another's breach of duty or negligence.

Punitive Damages

Financial compensation awarded to an aggrieved party that goes beyond what is necessary to compensate for losses and is intended to punish the wrongdoer.

Fraud

A deliberate deception practiced to secure unfair or unlawful gain, or to deprive a victim of a legal right.