How Much Extra Interest Do You Gain by Starting Today

question 104

Multiple Choice

How much extra interest do you gain by starting today rather than waiting one year if you want to deposit $1710 per year for 28 years? You are able to earn 7.07% compounded annually.

• A) $9689.63
• B) $9896.63
• C) $9869.63
• D) $9889.63
• E) $9999.63

---

Definitions:

Sampling Distribution

The probability distribution of a given random-sample-based statistic.

Variances

A measure of the dispersion or spread in a set of data points, indicating how much the values in a dataset differ from the mean.

Mean

The average of a set of numbers, calculated by adding them together and dividing by the count of the numbers.

Random Samples

A group of people selected from a larger pool where every person has the same probability of being chosen.