The Solution to This Problem Requires Time Value of Money

question 116

Multiple Choice

The solution to this problem requires time value of money calculations. Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. Kingston inherited $140,000 from an aunt. If Kingston decides not to spend his inheritance but to leave the money in his savings account until he retires in 15 years, how much money will he have assuming an annual interest rate of 8%, compounded semiannually to the closest answer given?

• A) $ 308,000
• B) $ 509,880
• C) $ 454,076
• D) $7,851,900

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Definitions:

Malcolm X

An African-American Muslim minister and human rights activist known for his advocacy for the rights of blacks and his criticism of the civil rights movement for its emphasis on nonviolence.

Chinese-American Planning Council

A social services organization in the United States aimed at aiding Chinese Americans in navigating educational, housing, and employment opportunities.

Chinese Consolidated Benevolent Association

An organization founded by Chinese immigrants in various American cities as a mutual aid society, often acting as a de facto government within Chinese communities.

American Society

Refers to the social structure, cultural norms, and community practices within the United States.