Suppose That You Deposit $10,000 in an Account That Pays

question 71

Multiple Choice

Suppose that you deposit $10,000 in an account that pays 6% interest and you want to know how much will be in your account at the end of 10 years.To solve this problem in Microsoft Excel,you would use which of the following Excel formulas?

• A)=FV(.06,10000,0,10)
• B)=PV(.06,10000,0,10)
• C)=FV(.06,10,0,10000)
• D)=PV(.06,10,0,10000)

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Definitions:

Poverty Line

A threshold set by governments or organizations to define the minimum income necessary to cover basic living costs, below which individuals are considered to be living in poverty.

Income Quintile

A statistical measure that divides a population into five equal groups according to their income levels, used to analyze income distribution.

Highest Quintile

Refers to the top 20% of the population sorted by income or wealth, indicating those with the highest levels of each.

Welfare Reform Act

Legislation aimed at changing the welfare system by encouraging work, limiting the duration of benefits, and supporting families.