Theresa Wants to Save $10,000 So That She Can Surprise

question 231

Multiple Choice

Theresa wants to save $10,000 so that she can surprise her husband with a vacation six years from now. She can earn 7% on her savings. How much more will she have to deposit if she waits one
More year before investing versus if she deposits one lump sum today?

• A) $466.44
• B) $469.15
• C) $470.23
• D) $471.08
• E) $471.54

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Definitions:

Ethnic Group

A group of people forming a population who are united by the same cultural heritage or ancestry.

Ethnic Enclaves

Geographical areas with high concentrations of a particular ethnic group, which can preserve cultural distinctiveness but also lead to social isolation.

Middle-Class Status

A social class characterized by moderate economic wealth and a standard of living neither very high nor very low.