Which of the Following Is the Correct Way to Compute

question 55

Multiple Choice

Which of the following is the correct way to compute the future value of $100 put into an account that earns 4 percent interest for 10 years?

• A)$100(1 + .04¹⁰)
• B)$100(1 + .0410)
• C)$100 *10(1 + .04)
• D)$100(1 + .04)¹⁰

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Definitions:

Big Bank

A big bank refers to a large, multinational banking institution that offers a wide range of financial services, often with significant influence in economic policies and markets.

Forger

An individual who commits fraud by creating or altering a document with the intent to deceive.

Negotiable Instrument

A signed document containing an unconditional promise or order to pay a specified sum of money to a designated person or to the bearer of the document.

Maker

In terms of financial instruments like checks or promissory notes, the maker is the party that promises to pay a certain amount of money.