Gordon Started Saving $25 a Month at Age 20 in an Account

question 129

Multiple Choice

Gordon started saving $25 a month at age 20 in an account earning 4% compounded monthly.At age 40 he would have ____ in this account.(Use time value tables or financial calculator)

• A) $6,000
• B) $7,170
• C) $9,169
• D) $9,255
• E) $9,890

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Definitions:

Regression Equation

A statistical method that models the relationship between a dependent variable and one or more independent variables to predict outcomes.

Random Factors

Unpredictable variables that can impact the outcome of a study, experiment, or business scenario, often beyond the control of the participants or management.

Time And Motion Studies

A business efficiency technique combining the time study work with motion study to standardize procedures and establish proper work methods.

Cost Estimation

The process of predicting the costs associated with the production of products or the delivery of services.