If You Invest $2,500 in a Bank Account That Pays

question 56

Multiple Choice

If you invest $2,500 in a bank account that pays 6% interest compounded quarterly,how much will you have in five years?

• A) $2,546.96
• B) $3,367.14
• C) $8,017.84
• D) $13,267.04

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Definitions:

Average Earnings

The mean income calculated by dividing the total income of a group by the number of individuals or instances in that group.

Life Expectancy

An average estimate of how long a person or organism is expected to live, based on factors such as genetics, lifestyle, and healthcare accessibility.

Trust Fund Bonds

Financial instruments issued by a trust to raise funds for investment purposes, backed by the assets managed within the trust.

Government Borrowing

The process by which a government raises funds through issuing debt instruments, such as bonds, to finance public spending beyond tax revenues.