An Amount Is to Be Deposited in a Savings Account

question 57

Multiple Choice

An amount is to be deposited in a savings account at the end of each year in order to provide funds for a trip to Europe, at the end of the fourth year. You have been asked to determine the amount of the annual deposit. What is the interest concept that best describes this application?

• A) Future value of an annuity.
• B) Future value of a single amount.
• C) Present value of a single amount.
• D) Present value of an annuity.

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Definitions:

Contractual Terms

Specific conditions and stipulations outlined in a contract that dictate the obligations and rights of the parties involved.

Legal Jargon

Specialized terminology or technical language used by legal professionals that may be difficult for non-experts to understand.

Institutional Ageism

Discriminatory policies and practices within institutions that favor younger individuals over older ones, often manifesting in employment, healthcare, and media representation.

Functionalism

Functionalism is a theoretical perspective in sociology and anthropology that interprets each part of society in terms of how it contributes to the stability of the whole society.