Use the Present Value Formula to Determine the Amount to Be

question 67

Multiple Choice

Use the present value formula to determine the amount to be invested now, or the present value needed.
-The desired accumulated amount is $3100 after 2 years invested in an account with 5% interest Compounded quarterly.

• A) $293.26
• B) $3423.91
• C) $2806.74
• D) $2811.79

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Definitions:

Crustaceans

A diverse group of aquatic animals that have a hard exoskeleton, including species such as crabs, lobsters, and shrimps.

Mollusks

A large and diverse phylum of invertebrates that includes snails, slugs, oysters, and octopuses, with a soft body and, frequently, a calcium carbonate shell.

Notochord

A flexible rod made out of a material similar to cartilage that provides support in the embryonic stages of all chordates and some adult animals.

Phylum

A major category in the classification of living organisms, ranking above class and below kingdom.