FutureSecure Bank claims that by depositing $5,000 in a savings account with a 7% annual interest rate compounded quarterly, the amount will grow to $10,000 in 7 years without any additional deposits. Is this claim true?
Answer
A
False. The amount will not reach 10 dollars comma 000 in 7 years at a 7 percent interest rate.
B
False. The amount will exceed 10 dollars comma 000 in 7 years at a 7 percent interest rate.
C
True. The amount will grow to exactly 10 dollars comma 000 in 7 years at a 7 percent interest rate.
D
False. The amount will not reach 8 dollars comma 000 in 7 years at a 7 percent interest rate.