. Secure I https://www.mathxl.com/Student/playerlest.aspxrtestid.16 Sb ,r&center

ID: 2593425 • Letter: #

Question

. Secure I https://www.mathxl.com/Student/playerlest.aspxrtestid.16 Sb ,r&centerwin;=yes ACG 3102 Hybrid Fall 17 Test: Exam 2 Time Remaining: 00:36:04 Submit Test This Test: 41 pts possib Question Help This Question: 1 p 13 of 41 (10 complete) Do er Company deposits$50,000 with Second National Bank in an account earning interest at 8% per annum, compounded sen have in the account after five years if interest is reinvested? annually How much will over A. $74,012 O B. $73,467 O C. $70,000 D. S60833 Click to select your answer Type here to search enovO

Explanation / Answer

Amount Deposited

50000

Rate of Interest

Formula

Amount Deposited *(1+(r/2))^n
Where, r = 8% and n = 5*2 = 10

50000*(1+(0.08/2))^10

50000*(1+0.04)^10

50000(1.04)^10

74012.21425

Amount after 5 years

74012

Therefore, the right option is option (a) 74012