Tishie Invests $3,000 Today at a 9% Rate of Return

question 234

Multiple Choice

Tishie invests $3,000 today at a 9% rate of return. She wants to have $24,000 to give to her granddaughter Kathy for college 16 years from now. Which one of the following statements is correct concerning Tishie's situation?

• A) Tishie will have the $24,000 when she wants it.
• B) Tishie would have to wait an additional ten years to have $24,000.
• C) Tishie would have to earn a 10% rate of return to have $24,000 in 16 years.
• D) Tishie will only have approximately $12,000 sixteen years from now.
• E) Tishie should plan on only giving Kathy $10,000 in sixteen years.

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Definitions:

Feedback Quality Control

Inspecting and testing products after they are produced.

Inspecting

The act of examining something carefully in order to determine its condition or identify problems, often performed as part of quality control in manufacturing.

Testing

The process of evaluating the functionality, quality, or performance of a product or system through examination and trial.

Six Sigma

A set of techniques and tools for process improvement aimed at reducing defects and enhancing quality, often associated with manufacturing and business processes.