An Investor Expects to Receive 10 Payments of $5,000 Each

question 61

Multiple Choice

An investor expects to receive 10 payments of $5,000 each made at the end of each period. If interest is compounded at 5% annually, what is the future value of these payments?

• A)$3,069.55
• B)$7,387.30
• C)$38,608.65
• D)$62,889.45

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Definitions:

Compensation

Compensation is the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

Elder Law

A relatively new legal specialty that involves serving the needs of older clients, such as estate planning and long-term care arrangements.

Estate-Planning

The process of organizing and managing an individual's assets for transfer after death, including the creation of wills and trusts.

Long-Term Care

A range of services and supports to meet health or personal care needs over an extended period of time, often for the elderly or disabled.