You Want to Set Aside Some Money Today in Order

question 15

Multiple Choice

You want to set aside some money today in order to present your son with a $3,000 trip upon his graduation from high school in seven years. If your opportunity cost of capital is 10% per
Year, how much do you need to set aside? Round your answer to the nearest dollar.

• A)$471
• B)$1,233
• C)$1,539
• D)$4,843

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Definitions:

Contractual Systems

Legal agreements that establish the terms and responsibilities between parties, often used in franchising, licensing, and distribution arrangements.

Level Of Service

A measure of the quality of service provided to customers, often evaluated against a set standard or customer expectations.

Self-Service Retailers

Retail outlets where customers serve themselves, selecting products without the direct assistance of staff.

Full-Service

Describing businesses or offerings that provide a complete range of services or products, obviating the need for customers to seek supplemental providers.