You Agree to Make 24 Deposits of $500 at the Beginning

question 98

Multiple Choice

You agree to make 24 deposits of $500 at the beginning of each month into a bank account.At the end of the 24th month,you will have $13,150 in your account.If the bank compounds interest monthly,what nominal annual interest rate will you be earning?

• A) 9.83%
• B) 8.00%
• C) 9.13%
• D) 6.87%
• E) 8.70%

---

Definitions:

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the company, reducing the amount of outstanding stock on the open market.

Paid-In Capital

Funds raised by a company through the issuance of common or preferred stock, representing the capital contributed by shareholders in exchange for shares.

No-Par Stock

Refers to shares issued without a nominal or face value, where the price is determined by the market or the company's board.

Treasury Stock

Shares that were issued by a company and then repurchased, not considered when calculating dividends or earnings per share.