Two Years Ago Darryl Put $3,000 into an Account Paying

question 120

Multiple Choice

Two years ago Darryl put $3,000 into an account paying 3 percent interest.How much does he have in the account today?

• A)$3,180.00
• B)$3,182.70
• C)$3,183.62
• D)None of the above are correct to the nearest cent.

---

Definitions:

Risk-free Interest Rate

The return on investment with no risk of financial loss, typically represented by government bonds.

Stock Price Volatility

This term describes the degree of variation of a trading price series over time as measured by the standard deviation of returns.

Intrinsic Value

The inherent worth of a financial asset, determined through fundamental analysis without reference to its market value.

Strike Price

The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.