After 2 Years, an Investment of $550 Compounded Annually at an Interest

question 76

Multiple Choice

After 2 years, an investment of $550 compounded annually at an interest rate r will yield an amount of 550(1 + r) ².
Write this polynomial in standard form.

• A) 1,100 + 1,100r
• B) 302,500 + 605,000r + 302,500r²
• C) 550 + 1,100r + 550r²
• D) 550r² + 1,100r + 550
• E) 550r² + 550r + 550

---

Definitions:

Cooling-Off Period

A statutorily defined period during which purchasers in door-to-door sales may change their minds and rescind a contract.

Bill of Exchange

A written order used in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date.

Cheque

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or the person/entity named on it.

Interest Act

A law governing the calculation and payment of interest due on debts or loans, to prevent usury and unfair practices.