A Sum Of $\$ 2000$ Was Invested for Four Years and the Interest Was Compounded

question 53

Multiple Choice

A sum of $\$ 2000$ was invested for four years and the interest was compounded quarterly. If this sum amounted to $\$ 2588.44$ after the given time, what was the interest rate?

• A) \(6.25 \%\)
• B) \(6.5 \%\)
• C) \(7 \%\)
• D) \(7.5 \%\)
• E) \(8.5 \%\)  

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Definitions:

Joint Tenants

A form of co-ownership where all owners have equal rights to the whole property, and upon the death of one owner, their interest automatically passes to the surviving owner(s).

Ownership

The legal right to possess, use, and dispose of property or an asset.

Watercourse

A natural or man-made channel through which water flows, such as a river, brook, or canal.

Land Owner

An individual or entity that holds the legal title or interest in a parcel of land.