How Much Money Must Be Put into a Bank Account

question 7

Multiple Choice

How much money must be put into a bank account yielding 5.5% (compounded annually) in order to have $250 at the end of five years (round to nearest $1) ?

• A) $237
• B) $191
• C) $187
• D) $179

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Definitions:

Promotion

Marketing strategies and tactics used to increase awareness, interest, and sales of a product or service.

Over-optimism

The tendency to overestimate the likelihood of positive outcomes in situations or decisions.

Worker

An individual engaged in a specific activity or labor, especially for economic gain.

Credit Card

A card issued by a financial institution that allows the cardholder to borrow funds with which to pay for goods and services with the promise to repay these funds, plus any agreed charges.