What Regular Investment, Made at the End of Every Three

question 147

Multiple Choice

What regular investment, made at the end of every three months and earning 10% compounded quarterly, would accumulate to $475,000 in 20 years?

• A) $3,492.86
• B) $17,616.21
• C) $7,856.83
• D) $1,912.37
• E) $7,916.67

---

Definitions:

Income

Monetary gain derived from work, investments, business, or other sources intended to fund personal expenditures.

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Utility Function

A rephrased definition: A tool in economics to quantify an individual's satisfaction from consuming different bundles of goods and services.

Price

The sum of money needed to buy a product or service.