Elaine Has Just Received an Insurance Settlement of $25,000

question 46

Multiple Choice

Elaine has just received an insurance settlement of $25,000. She wants to save this money until her daughter goes to college. If she can earn an average of 6.5 percent, compounded annually, how much will she have saved when her daughter enters college 8 years from now?

• A) $38,000.00
• B) $40,929.02
• C) $41,374.89
• D) $41,899.60
• E) $42,000.00

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Definitions:

Production Efficiencies

The optimization of resources and processes to maximize output while minimizing waste and costs in manufacturing.

Production Systems

The combination of human resources, equipment, and procedures used to produce goods or services, often characterized by a specific volume and quality output.