Suzette Is Going to Receive £10,000 Today as the Result

question 7

Multiple Choice

Suzette is going to receive £10,000 today as the result of an insurance settlement.In addition, she will receive £15,000 one year from today and £25,000 two years from today.She plans on saving all of this money and investing it for her retirement.If Suzette can earn an average of 11% on her investments, how much will she have in her account if she retires 25 years from today?

• A)£536,124.93
• B)£541,414.14
• C)£546,072.91
• D)£570,008.77
• E)£595,098.67

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity, operations, and financial health.

T-bond Futures

Futures contracts that are based on the price movements and yield of U.S. Treasury bonds.

Stock-index Futures

Futures contracts based on stock indices, which allow investors to buy or sell the future performance of a stock market index.

Housing Market

The market segment related to buying, selling, and renting residential properties.