Borrowed $50,000 Which You Must Repay in 10 Years

question 115

Multiple Choice

borrowed $50,000 which you must repay in 10 years.You plan to make an initial deposit today, then make 9 more deposits at the beginning of each the next 9 years, but with the deposits increasing at the inflation rate.You expect to earn 5% on your funds, and you expect a 3% inflation rate.To the nearest dollar, how large must your initial deposit be to enable you to reach your $50,000 target?

• A)$3,008
• B)$3,342
• C)$3,676
• D)$4,044
• E)$4,448

---

Definitions:

Disadvantaged Racial Minorities

Racial or ethnic groups that have historically faced social, economic, and political disadvantages and discrimination.

Petrochemical Plants

Industrial facilities engaged in the production of chemicals and derivatives primarily from petroleum and natural gas.

Cancer Alley

A colloquial name for an area along the Mississippi River between Baton Rouge and New Orleans, known for a high concentration of industrial plants and associated with elevated cancer rates among its population.

Science and Technology

Fields of study and application that involve the systematic study of the natural world through observation and experiment, and the application of scientific knowledge for practical purposes.