The Future Value of $500 Saved for Two Years at an Interest

question 30

Multiple Choice

The future value of $500 saved for two years at an interest rate of 5% is

• A)$550.25.
• B)$550.00.
• C)$551.25.
• D)None of the above are correct.

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Definitions:

Interest-only Loans

Loans for which the borrower pays only the interest on the principal balance, with the principal amount remaining unchanged over a set term.

Variable Rate Mortgages

Mortgages with interest rates that can fluctuate over time based on underlying benchmark interest rates or market conditions.

Housing Prices

The monetary cost of purchasing a house, which can vary widely based on location, size, and market conditions.

HUD Guidelines

Regulations and standards set by the U.S. Department of Housing and Urban Development to ensure fair housing and urban development practices.