If You Put $200 in a Savings Account at the Beginning

question 42

Multiple Choice

If you put $200 in a savings account at the beginning of each year for five years and $300 at the beginning of each year for the next five years, how much will be in the account at the end of the 10th year? Assume that the account earns 10%, and round to the nearest $1.00.

• A)$3798
• B)$4178
• C)$4596
• D)$2750

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Definitions:

Main-Purpose Rule

A legal principle that if the main purpose of a guarantor to sign a surety agreement is to secure a personal benefit, the agreement does not have to be in writing to be enforceable.

Secondary Obligation

An obligation that arises indirectly or as a result of another primary obligation, often in legal or financial contexts.

Statute of Frauds

A legal concept that requires certain types of contracts to be written and signed to be enforceable.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by the party against whom enforcement is sought, to be legally enforceable.