If You Want to Have $5,000 in 10 Years,how Much

question 113

Multiple Choice

If you want to have $5,000 in 10 years,how much money must you put in a savings account today? (Assume that the savings account pays 4% and it is compounded daily; round to the nearest $1) .

• A) $3,352
• B) $3,370
• C) $4,102
• D) $4,207

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Definitions:

Beneficiary

A third party receiving benefits from a contract made between two other parties. Also, the person named in an insurance policy to receive benefits paid by the insurer in event of a claim.

Fire Insurance Policy

A contract that provides coverage against losses or damages caused by fire to property.

Premium

The consideration paid by the insured to the insurer for insurance protection.

Water Damage

Water damage refers to the destruction or harm caused to property by water intrusion, which can result from various sources like floods, leaks, or condensation.