You Plan to Invest $2,500 in a Money Market Account

question 124

Multiple Choice

You plan to invest $2,500 in a money market account which will pay an annual stated (simple) interest rate of 8.75 percent,but which compounds interest on a weekly basis.If you leave this money on deposit for one year (52 weeks) ,what will be your ending balance when you close the account?

• A) $2,583.28
• B) $2,611.72
• C) $2,681.00
• D) $2,703.46
• E) $2,728.50

---

Definitions:

Statute of Frauds

A rule of law mandating that some agreements must be documented in written form to be legally binding.

Signature of Guarantor

The act of signing by a guarantor, who agrees to fulfill the obligations of a debtor in case the debtor fails to meet their commitments.

Written Agreement

A formal, documented contract between parties, outlining terms and conditions that are legally binding.

Written Contract

A legally binding agreement between two or more parties that is documented and signed in writing.