If You Start with $4,000 Today, Approximately How Much Will

question 80

Multiple Choice

If you start with $4,000 today, approximately how much will you have in 8 years if you can earn 8% each year?

• A) $6,454.
• B) $7,404.
• C) $8,444.
• D) $9,244.

---

Definitions:

Vesting Period

The period of time before an employee gains unconditional ownership over employer-provided stock or contributions to a retirement plan.

Call Option

An agreement in the realm of finance that permits the purchaser to acquire a stock, bond, commodity, or another asset at a predetermined price during a defined timeframe, without compelling them to do so.

Variance

A statistical measure of the distribution of data points in a data set, indicating how far each data point is from the mean.

Downside Risk

The potential loss in value of an investment, indicating the estimate of the extent to which an asset or security could decrease in value.