If $2,000 Is Invested in an Account with 5% Interest

question 119

Multiple Choice

If $2,000 is invested in an account with 5% interest compounding yearly, what will the balance of the account be after 6 years? Please refer to the following Future Value table:

• A)$1,340
• B)$2,680
• C)$2,676
• D)$2,432

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Definitions:

Monthly Interest Rate

The interest rate charged or earned, expressed on a monthly basis, typically used for loans or investments.

Monthly Interest Rate

It's the interest rate applied each month on loans, savings, or investments, calculated by dividing the annual interest rate by 12.

Probability Of Default

The likelihood that a borrower will be unable to meet its debt obligations.