Samantha opened a savings account this morning.Her money will earn 5 percent interest,compounded annually.After five years,her savings account will be worth $5,600.Assume she will not make any withdrawals.Given this,which one of the following statements is true?
A) Samantha deposited more than $5,600 this morning.
B) The present value of Samantha's account is $5,600.
C) Samantha could have deposited less money and still had $5,600 in five years if she could have earned 5.5 percent interest.
D) Samantha would have had to deposit more money to have $5,600 in five years if she could have earned 6 percent interest.
E) Samantha will earn an equal amount of interest every year for the next five years.
Correct Answer:
Verified
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