Faisal Has $12,000 in His Savings Account and Can Save

question 42

Multiple Choice

Faisal has $12,000 in his savings account and can save an additional $3600 per year. If interest rates are 12%, how long will it take his savings to grow to $47,000?

• A) 4.3 years
• B) 6.3 years
• C) 5.3 years
• D) 7.3 years

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Definitions:

Decision Tree

A decision tree is a graphical representation used to visualize the choices in a decision-making process, their possible outcomes, chance event results, and resource costs, aiding in analysis and planning.

Graphic Representation

A visual method of displaying information or data, such as charts, diagrams, or maps.

Equal Probability

refers to the principle that every outcome in a given sample space has the same chance of occurring.

Certainty

The state of being sure or confident about something, often used in decision-making scenarios where outcomes can be predicted with high accuracy.