Which of the Following Will Result in a Future Value

question 98

Multiple Choice

Which of the following will result in a future value greater than $100?

• A) $40 deposited now with an annual interest rate of 14% for 8 years.
• B) $60 deposited now with an annual interest rate of 12% for 4 years.
• C) $60 deposited now with an annual interest rate of 8% for 6 years.
• D) $80 deposited now with an annual interest rate of 7% for 3 year.
• E) $80 deposited now with an annual interest rate of 10% for 2 year.

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Definitions:

APS

Acronym for Accumulated Plan Savings, often related to retirement saving plans; or it could also mean Anti-Phishing Security, depending on the context.

Disposable Income

The monetary resources left for household spending and saving after the application of income taxes.

Dissaving

When consumption is greater than disposable income; negative saving.

APC

In economics, stands for Average Propensity to Consume, which is the fraction of income spent on consumption.