AHIP Exam AHM-520 Topic 4 Question 75 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 75
Topic #: 4

An investor deposited $1,000 in an interest-bearing account today. That sum will accumulate to $1,200 two years from now. One true statement about this transaction is that:

AThe process by which the original $1,000 deposit grows to $1,200 is known as compounding

B$1,200 is the present value of the $1,000 deposit

CThe $200 increase in the deposit's value is its incremental cash flow

DThe $200 difference between the original deposit and the accumulated value of the deposit is known as the deposit's discount

Show Suggested Answer

Suggested Answer: A

by Kimbery at Oct 03, 2023, 06:42 AM

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