The Solution to This Problem Requires Time Value of Money

question 26

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations.
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Kingston inherited $140,000 from an aunt.If Kingston decides not to spend his inheritance but to leave the money in his savings account until he retires in 15 years,how much money will he have assuming an annual interest rate of 8%,compounded semiannually?

• A)$308,000
• B)$509,880
• C)$454,020
• D)$7,851,900

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Definitions:

"As If"

Used in various contexts to indicate acting or thinking in a way that reflects an assumption or pretense, often associated with theoretical or hypothetical scenarios.

Culture

The complex system of meaning and behavior that defines the way of life for a given group or society.

Functions

are the intended or expected outcomes of social institutions, practices, or structures in society.

Elements of Culture

Fundamental aspects that constitute a culture, including beliefs, values, norms, symbols, language, and customs that shape the identity and social behavior of a group.