HighYield Savings advertises that an initial deposit of $2,000 at a 6% interest rate compounded semiannually will result in the balance reaching $5,000 in 10 years, with no need for additional deposits. Is this advertisement accurate?
Answer
A
True. The balance will reach 5 dollars comma 000 in 10 years at a 6 percent interest rate.
B
False. The balance will only double in 10 years at a 6 percent interest rate.
C
False. The balance will exceed 5 dollars comma 000 in 10 years at a 6 percent interest rate.
D
False. The balance will not reach 4 dollars comma 000 in 10 years at a 6 percent interest rate.