Theo Is Depositing $1,300 Today in an Account with an Expected

question 24

Multiple Choice

Theo is depositing $1,300 today in an account with an expected rate of return of 8.1 percent.If he deposits an additional $3,200 two years from today,and $4,000 three years from today,what will his account balance be ten years from today?

• A)$14,044.89
• B)$16,412.31
• C)$15,182.53
• D)$15,699.54
• E)$17,741.71

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically expressed as an annual rate.

Income Tax Expense

The amount of income tax a company or individual owes to the government based on the applicable tax rates and rules.

Instalments

Payments made regularly over time to settle a debt or purchase, allowing for the total cost to be paid incrementally rather than as a lump sum.

Semi-Annually

Occurring or conducted twice a year, typically every six months.