Ingrid Birdman Can Earn a Nominal Annual Rate of Return

question 81

Multiple Choice

Ingrid Birdman can earn a nominal annual rate of return of 12%, compounded semi-annually.If Ingrid made 40 consecutive semi-annual deposits of $500 each, with the first deposit being made today, how much will she accumulate at the end of year 20? Round off to the nearest $1.

• A)$52 821
• B)$57 901
• C)$82 024
• D)$64 132

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Definitions:

Mobile Devices

Portable computing gadgets, such as smartphones and tablets, that allow users to access, process, and manage information on the go.

UCC Article 4

A section of the Uniform Commercial Code that deals with bank deposits and collections, outlining the rights and liabilities of banks and their customers.

Brokerage House

A financial institution that buys and sells securities, such as stocks and bonds, on behalf of clients while charging a commission for the service.

Joint Checking Account

A bank account shared by two or more individuals, typically allowing all holders equal access to funds.