Justin Invests $4,000 in a Savings Account for Two Years

question 21

Multiple Choice

Justin invests $4,000 in a savings account for two years. The account pays 2% interest compounded annually. How much money will be in the account at the end of the second year?

• A) $4,161.60
• B) $4,160.00
• C) $4,080.00
• D) $1,161.60

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Definitions:

Transaction-oriented Marketing

Marketing strategies focused primarily on making sales transactions rather than building long-term relationships with customers.

Premium Pricing

A competitor-based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Special Incentives

Additional rewards or benefits offered to motivate or encourage a specific action or behavior from customers or employees.