Suppose an Investor Deposits $5,000 in an Interest-Bearing Account at Her

Multiple Choice

Suppose an investor deposits $5,000 in an interest-bearing account at her local bank. The account pays 2.5% (annual) with interest compounded monthly. If the investor plans on withdrawing the original principal plus accumulated interest at the end of 10 years, what is the total amount that she should expect to receive assuming interest rates do not change?

A) $5,105.15
B) $6,400.42
C) $6,418.46
D) $96,790.75