Jessica Received a Gift of $7,500 at the Time of Her

question 59

Multiple Choice

Jessica received a gift of $7,500 at the time of her high school graduation.She invests it in an account that yields 10% compounded semiannually.What will the value of Jessica's investment be at the end of 5 years? (PV of $1,FV of $1,PVA of $1,and FVA of $1) $\bold{\text{(Use appropriate factor(s) from the tables provided.) }}$

• A)$8,250.00
• B)$11,250.00
• C)$12,216.75
• D)$9,375.00
• E)$10,500.00

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Definitions:

Bank Statement

A report sent by a bank to a customer indicating the previous balance, ATM transactions, nonsufficient funds, individual checks processed, individual deposits received, service charges, and ending bank balance.

Outstanding Checks

Checks written by a company or person that were not received or not processed by the bank before the preparation of the bank statement.

Financial Statement

A formal record of the financial activities of a business, person, or other entity, presented in a structured manner to understand financial conditions and operations.

Normal Balance

The side of an account (debit or credit) where increases are recorded, depending on the account type.