Multiple Compounding Periods (FV): Your Brother Has Asked You to Help

question 78

Multiple Choice

Multiple compounding periods (FV) : Your brother has asked you to help him with choosing an investment. He has $5,000 to invest today for a period of two years. You identify a bank term deposit that pays an interest rate of 4.25 percent with the interest being paid quarterly. What will be the value of the investment in two years?

• A) $5,434
• B) $5,441
• C) $5,107
• D) $5,216

---

Definitions:

Avoidance

A defensive or proactive behavior aimed at preventing discomfort, danger, or engaging with stressful situations.

Outcome

An outcome is the result or effect of an action, decision, or situation.

Primary Appraisal

The initial evaluation process where an individual assesses the significance of an event as a threat, challenge, or harm/loss.

Amygdala

A region of the brain within the temporal lobe, associated with experiencing emotions, particularly fear and aggression.