You Need to Have $35,000 on Hand to Buy a New

question 121

Multiple Choice

You need to have $35,000 on hand to buy a new Lexus five years from today.To achieve that goal,you want to know how much you must invest today in a certificate of deposit guaranteed to return you 9% per year.To help determine what today investment is sum must be,you will use:

• A)present value factors
• B)future value factors
• C)present value factors of an annuity
• D)future value factors of an annuity

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Definitions:

3-Methylpentane

An organic compound that is a branched alkane with six carbon atoms, where the methyl group is attached to the third carbon.

Reaction

A process in which substances, called reactants, transform into different substances, called products.

Structure

The arrangement of atoms within a molecule that defines its chemical properties and reactivity.

Reaction

A method where reactants are converted into distinct substances known as products.