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

question 44

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 CD 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

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Definitions:

Strabismus

A condition where the eyes do not properly align with each other when looking at an object, often referred to as crossed eyes.

Amblyopia

A vision development disorder known as "lazy eye," where an eye fails to achieve normal visual acuity, despite the use of prescription eyeglasses or contact lenses.

Presbyopia

A form of age-related vision impairment characterized by difficulty in focusing on close objects, necessitating reading glasses or bifocals.

Iritis

is inflammation of the iris, the colored part of the eye, which can cause pain, light sensitivity, decreased vision, and redness of the eye, and requires prompt treatment to prevent serious complications.