You Borrowed $50,000 Which You Must Repay in 10 Years

question 65

Multiple Choice

You borrowed $50,000 which you must repay in 10 years.You plan to make an initial deposit today,then make 9 more deposits at the beginning of each the next 9 years,but with the deposits increasing at the inflation rate.You expect to earn 5% on your funds,and you expect a 3% inflation rate.To the nearest dollar,how large must your initial deposit be to enable you to reach your $50,000 target?

• A) $3,008
• B) $3,342
• C) $3,676
• D) $4,044
• E) $4,448

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Definitions:

Costs

The amount of money required for the production, maintenance, or acquisition of goods and services.

Androgynous Individuals

People who do not fit neatly into the conventional gender roles of male or female, often blending or embracing characteristics of both.

Instrumental

Pertaining to actions or objects that serve as means to an end, often referring to the practical or functional use of something.

Expressive Roles

Roles associated with emotional support, nurturance, and maintaining interpersonal relationships within the family or group.