If You Deposit $10,000 Today in an Account That Pays

question 35

Multiple Choice

If you deposit $10,000 today in an account that pays 5% interest compounded annually for five years,how much interest will you earn?

• A) $2,500.00
• B) $2,762.82
• C) $3,400.96
• D) $12,762.82

---

Definitions:

Spot Trade

A transaction for the immediate delivery of a financial instrument or commodity.

Forward Market

A financial market in which contracts are made to buy or sell assets at a specified future date at a price agreed upon today.

Note Issuance Facility

A financing arrangement where borrowers can issue short-term debt securities under a pre-arranged limit.

Euromarket

An international financial market for currencies, securities, and bank deposits, largely operated outside the regulatory purview of any single country.