How Much Do You Have to Invest Today at an Annual

question 77

Multiple Choice

How much do you have to invest today at an annual rate of 8%,if you need to have $5,000 six years from today?

• A) $3,150.85
• B) $4,236.75
• C) $7,934.37
• D) $2,938.48

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Definitions:

Hypotheses and Theories

Hypotheses are proposed explanations made on the basis of limited evidence as a starting point for further investigation, whereas theories are well-substantiated explanations acquired through the scientific method and repeatedly tested and confirmed through observation and experimentation.

Observed Facts

Information or knowledge directly perceived or convincingly ascertained through the process of observation and empirical investigation.

Scientists

Individuals engaged in systematic activities to acquire knowledge about the natural world through observation and experimentation.

Correspondence Theory

A theory of truth stating that the truth or falsehood of a statement is determined by how it relates to the world and whether it accurately describes (corresponds with) that world.