You Invest $1,000 at a Variable Rate of Interest

question 68

Multiple Choice

You invest $1,000 at a variable rate of interest.Initially the rate is 4% compounded annually for the first year,and the rate increases one-half of one percent annually for five years (year two's rate is 4.5%,year three's rate is 5.0%,etc.) .How much will you have in the account after five years?

• A) $1,276
• B) $1,359
• C) $1,462
• D) $1,338

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Definitions:

DNA Replication

The biological process of producing two identical replicas of DNA from one original DNA molecule.

mRNA Molecule

Messenger RNA, a type of RNA that conveys genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.

Introns

Non-coding sequences of DNA within a gene that are removed by RNA splicing during the maturation of the final RNA product.

Exons

Regions of a gene that code for proteins and are expressed in the RNA.