At the beginning of your freshman year, your favorite aunt and uncle deposit $10,000 intoa 4-year bank certificate of deposit (CD) that pays 5% annual interest. You will receive themoney in the account (including the accumulated interest) if you graduate with honors in4 years. How much will there be in the account after 4 years?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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At the beginning of your freshman year, your favorite aunt and uncle deposit $10,000 into
a 4-year bank certificate of deposit (CD) that pays 5% annual interest. You will receive the
money in the account (including the accumulated interest) if you graduate with honors in
4 years. How much will there be in the account after 4 years?

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