Assume That,to Help Build Your Nest-Egg,you Made Two Deposits of $100,one

question 117

Multiple Choice

Assume that,to help build your nest-egg,you made two deposits of $100,one on January 1,2014,and one on July 1,2014,in a savings account that paid 10 percent compounded semiannually.On January 1,2015,the bank increased the interest rate paid on savings accounts to 12 percent,annual compounding.Then you made a third $100 deposit on April 1,2015.How much should there be in your account on January 1,2016?

• A) $353.08
• B) $349.95
• C) $355.27
• D) $362.10
• E) $338.43

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Definitions:

Echinoderms

Invertebrates with a water–vascular system, and hardened plates and spines in the skin or body.

Annelids

A phylum of invertebrate worms characterized by segmented bodies and often found in moist environments; includes earthworms, leeches, and polychaetes.

Arthropods

represent the largest phylum of animals, including insects, arachnids, and crustaceans, characterized by exoskeletons and segmented bodies.

Oligochaete

A subclass of annelid worms, characterized by having few chaetae (bristles) per segment, such as earthworms.