Your Big Brother Deposited $10,000 Today at 9% Interest for 6

question 223

Multiple Choice

Your big brother deposited $10,000 today at 9% interest for 6 years. You would like to have just as much money at the end of the next 6 years as your brother. However, you can only earn 7.5% interest. How much more money must you deposit today than your brother did if you are to have the same amount at the end of the 6 years?

• A) $398.68
• B) $487.63
• C) $575.00
• D) $648.21
• E) $866.96

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Definitions:

Constitutional Amendment

A formal change or addition proposed or made to a constitution, requiring a specific procedure for adoption that is more rigorous than for ordinary legislation.

Separation of Powers

The division of governmental powers among independent branches to prevent the concentration of power and provide checks and balances.

Charles Beard

An influential American historian known for his interpretation of the economic interests that motivated the Founding Fathers in writing the Constitution.

Constitution

The basic rules and recognized examples based on which a state or different entity is administered.