Suppose an Investor Deposits $2500 in an Interest-Bearing Account at Her

Multiple Choice

Suppose an investor deposits $2500 in an interest-bearing account at her local bank. The account pays 2.5% interest compounded annually. If the investor plans on withdrawing the original principal plus accumulated interest at the end of 7 years, what is the total amount that she should expect to receive assuming interest rates do not change?

A) $2,971.71
B) $2,974.89
C) $3,532.43
D) $11,920.93