Janice Would Like to Send Her Parents on a Cruise

question 127

Multiple Choice

Janice would like to send her parents on a cruise for their 25th wedding anniversary. She has priced the cruise at $15,000 and she has 5 years to accumulate this money. How much must Janice deposit annually in an account paying 10 percent interest in order to have enough money to send her parents on the cruise?

• A) $2,234
• B) $2,457
• C) $1,862
• D) $3,000

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Definitions:

Seamounts

Underwater mountains formed by volcanic activity, rising from the ocean floor but not reaching the surface.

Smooth

Describes surfaces with an even or flat texture that is free of abrasions or roughness.

Continental Rifting

The process by which a continent stretches and splits along a rift zone, often leading to the formation of new oceanic crust.

Seafloor Spreading

The process by which new oceanic crust is formed at mid-ocean ridges as tectonic plates diverge, leading to the gradual widening of the ocean.