ABC Bank Pays 2% Simple Interest Compounded Annually on an Investment

question 25

Multiple Choice

ABC Bank pays 2% simple interest compounded annually on an investment of $10,000.What is the interest earned in the fifth year?

• A) $2000
• B) $200
• C) $1000
• D) $100
• E) $500

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Definitions:

Mechanical Holding Circuit

A circuit design that maintains the current flow or signal, keeping a device like a relay activated even after the initial actuating signal is removed.

Motor Control Circuits

Electrical circuits designed to control the start, stop, speed, and direction of an electric motor.

Motor Starter

A device that controls the use of electrical power to equipment, specifically to an electric motor, by means of protection and control circuitry.

No-voltage Drop-out

A safety feature in electrical devices that causes them to automatically switch off in the event of a voltage reduction or loss, preventing damage or unsafe conditions.