Your Brother Has Asked You to Help Him to Choose

question 49

Multiple Choice

Your brother has asked you to help him to choose an investment. He has $6,000 to invest today for a period of two years. You identify a bank CD that pays an annual interest rate of 4.25 percent with the interest being paid quarterly. What will be the value of the investment in two years?

• A) $6,550
• B) $6,529
• C) $6,107
• D) $6,216

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Definitions:

Timeliness

The quality or habit of occurring, acting, or being done at the appropriate or planned time.

Availability

The state of being ready for use or accessible for a certain purpose or need.

Performance Contingency

A condition where the outcome or rewards depend on the level of performance achieved.

Consistency

The quality of always acting or behaving in the same way, leading to predictability in one's actions or responses.