Sofia Plans to Save for Next Two Years

question 88

Multiple Choice

Sofia plans to save for next two years. She plans to put away $1000 every 6 months starting 6 months from now. What will be the value of her savings after two years if her savings accounts earns at a rate of 8% compounded semi-annually?

• A) $4000
• B) $4246.46
• C) $2080
• D) $6414.51
• E) $6632.98

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Definitions:

Economic Value

The worth of a good or service determined by the market, reflecting its utility, rarity, and demand by consumers.

Coral Reef

Underwater ecosystems characterized by reef-building corals. Reefs form barriers to protect coastlines from waves and storms and are home to a diverse range of marine species.

Grassland Habitat

Areas where grasses predominate over other plant types, which support a varied mix of flora and fauna specialized to live in these environments.