Since Your First Birthday,your Grandparents Have Been Depositing $100 into a Savings

question 2

Multiple Choice

Since your first birthday,your grandparents have been depositing $100 into a savings account every month.The account pays 4% interest annually.Immediately after your grandparents make the deposit on your 18th birthday,the amount of money in your savings account will be closest to:

• A)$11,941,266
• B)$31,559
• C)$30,774
• D)$21,600

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Definitions:

Exchange Rate Risk

The potential for loss due to fluctuations in the exchange rate between two currencies in international finance.

Foreign Currency

Currency used in a country other than one's own, necessitating exchange for transactions.

Marginal Tax Rate

The rate at which the next dollar of taxable income would be taxed, often applied to measure the impact of taxes on additional income.

Exchange Rate

The velocity at which one currency can be swapped for another, affecting global trade and investments.