If a Father and Mother Set Aside a Certain Amount

question 55

Multiple Choice

If a father and mother set aside a certain amount each year for their daughter's college fund, which table would be used to determine the amount necessary to be put away each year in order to reach a certain goal once the daughter attends college?

• A) The present value of $1
• B) The future value of $1.
• C) The future value of an annuity of $1.
• D) Present value of an annuity of $1.

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Definitions:

Distraction

Anything that diverts attention away from the focus of activity, potentially decreasing productivity or quality of work.

Mind Map

A visual diagram that represents ideas, tasks, or other items linked to and arranged around a central concept.

Recall

The transfer of information from long-term memory into short-term memory.

Credit Cards

Financial tools issued by financial institutions allowing cardholders to borrow funds within a pre-approved limit for purchases or cash advances.