A Two-Year Investment of $200 Is Made Today at an Annual

question 2

Multiple Choice

A two-year investment of $200 is made today at an annual interest rate of 6%.Which of the following statements is true?

• A)The interest earned in year two is $12.00 and year one is $12.72.
• B)The interest earned in year one is $12.00 and year two is $12.72.
• C)The FV is $224.00.
• D)The future value would be greater if the interest rate were lower.

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Definitions:

Design Resource

Materials, tools, or references used to aid in the creation, planning, and execution of designs and creative projects.

Principle of Contrast

A design principle that suggests using differences in color, size, shape, and texture to make an element stand out.

Pull Quote

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Proximity

The closeness or physical distance between people, objects, or geographical locations.