Laura Diane Is Creating a University Investment Fund for Her

question 50

Multiple Choice

Laura Diane is creating a university investment fund for her son Leland.She will put in $71.00 per month at the end of each month for the next 15 years and expects to earn an 8% annual rate of return,compounded monthly.How much money will Leland have when he starts university?

• A) $28,052.38
• B) $12,780.00
• C) $13,393.98
• D) $24,568.71

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health of the business.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the business cycle, whichever is longer.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.