You Have Discovered an Investment Opportunity That Earns a 6

question 43

Multiple Choice

You have discovered an investment opportunity that earns a 6% rate of interest compounded semiannually.What amount should you deposit today to have $5,000 in three years?

• A)$3,832
• B)$4,100
• C)$4,187
• D)$4,237

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Definitions:

Ester Formation

A chemical reaction process where carboxylic acids react with alcohols in the presence of acid catalysts to form an ester and water.

Butanal

An aldehyde with the formula C4H8O, characterized by having a carbonyl group at the end of a four-carbon chain.

Butanoic Acid

A saturated four-carbon fatty acid with a carboxylic acid functional group; known for its unpleasant smell.

Major Organic

Refers to the primary or most abundant organic compound formed as a product in a chemical reaction.