If You Invest $3,000 Today at 7% Interest, What Is

question 111

Multiple Choice

If you invest $3,000 today at 7% interest, what is the value of the investment at the end of 5 years?
$\begin{array}{|c|c|c|c|c|c|c|}\hline \text {Future}\\\text {Value of}\\\$ 1\\ \hline &4\%&5\%&6\%&7\%&8\%&9\%\\\hline 1&1.040 & 1.050 & 1.060 & 1.070 & 1.080 & 1.090\\\hline2& 1.082 & 1.103 & 1.124 & 1.145& 1.166&1.188 \\\hline 3&1.125 & 1.158 & 1.191 & 1.225 & 1.260 &1.295 \\\hline4& 1.170 & 1.216 & 1.262 & 1.311 & 1.360 &1.412 \\\hline5& 1.217 & 1.276 & 1.338 & 1.403 & 1.469&1.539 \\\hline 6&1.265 & 1.340 & 1.419 & 1.501 & 1.587 & 1.677\\\hline7& 1.316 & 1.407 & 1.504 & 1.606 & 1.714 &1.828 \\\hline8& 1.369 & 1.477 & 1.594 & 1.718 & 1.851 & 1.993\\\hline 9&1.423 & 1.551 & 1.689 & 1.838 & 1.999 &2.172 \\\hline10& 1.480 &1.629 &1.791 & 1.967 &2.159&2.367 \\\hline\end{array}$

• A) $3,210
• B) $4,367
• C) $4,190
• D) $4,209

---

Definitions:

Significance Level

The threshold against which the p-value is judged to determine statistical significance, often denoted by alpha (α) and commonly set at 0.05 or 5%.

Significance Level

A threshold or probability used in statistical hypothesis testing to determine whether to reject the null hypothesis, often denoted by alpha with a common value of 0.05.

Z-statistic

A statistic that measures the distance in standard deviations of a sample mean from the population mean under the null hypothesis.

Rejection Region

The set of values for which the null hypothesis is rejected in hypothesis testing.