A Bank Pays 2

question 37

Multiple Choice

A bank pays 2.5% interest on deposits. What is the return on a $1000 deposit after two years if interest is compounded continuously?

• A) $1051.27
• B) $778.80
• C) $1648.72
• D) $1284.03
• E) none of these

Recognize the significance of providing support to individuals undergoing grief or mourning.

Understand the ethical considerations and guidelines surrounding organ and tissue donation.

Describe the scope, importance, and accessibility of palliative care.

Facilitate end-of-life decision making by offering time, explanations, and appropriate guidance.

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Definitions:

Quarterly Dividends

Dividends paid by a corporation to its shareholders at the end of each quarter of the fiscal year.

Compounded Quarterly

Interest calculation method where interest is added to the principal four times a year, affecting the total interest earned or paid.

Redeemed

In financial terms, to exchange a financial instrument like a bond or coupon for its value in cash or goods; also refers to utilizing a reward or benefit.

Compounded Semi-Annually

Refers to the process of applying interest to a principal sum twice a year, leading to interest being earned on previously earned interest.