A Company Invests $10,000 at 7% Compounded Annually

question 134

True/False

A company invests $10,000 at 7% compounded annually. At the end of the second year, the company should have $11,400 in the fund.
$10,000 + ($10,000 x 7%) + [($10,000 + ($10,000 x 7%)) x 7%] = $11,449 or
$10,000 x 1.07 x 1.07 = $11,449

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Definitions:

Catastrophic Melting

Rapid melting of ice or snow, often due to volcanic activity or sudden climate change, that can lead to significant water flow or flooding.

Pyroclastic Flow

A fast-moving current of hot gas and volcanic materials (ash, lava fragments) that flows down the sides of a volcano during an explosive eruption.

Lahar

A mudflow mostly composed of volcanic-derived materials and generally formed on the flank of a volcano.

Composite Volcanoes

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