You Want to Have $260,000 Saved 15 Years from Now

question 173

Multiple Choice

You want to have $260,000 saved 15 years from now. How much less do you have to deposit today to reach this goal if you can earn 8% rather than 7% on your savings?

• A) $8,728.44
• B) $12,273.13
• C) $16,602.12
• D) $17,414.41
• E) $20,019.2

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Definitions:

ROI

Return on Investment, a measure used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.

Controllable Margin

The portion of income that can be directly controlled or influenced by management decisions, often excluding fixed costs.

Operating Assets

Assets used in the day-to-day operations of a business, contributing to its ability to generate income.

Contribution Margin

The amount remaining from sales revenue after variable production costs have been deducted, contributing to covering fixed costs.