You Are Trying to Accumulate $2,000 at the End of 5

question 58

Multiple Choice

You are trying to accumulate $2,000 at the end of 5 years by contributing a fixed amount at the end of each year.You initially decide to contribute $300 per year but find that you are coming up short of the $2,000 goal.What could you do to increase the value of the investment at the end of year 5?

• A) invest in an investment that has a lower rate of return.
• B) invest in an investment that has a higher rate of return.
• C) make a sixth year contribution.
• D) contribute a smaller amount each year.

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Definitions:

Nonresidential Real Estate

Property used for commercial, industrial, or other business purposes, excluding residential dwellings.

Residential Real Estate

Property zoned and used for dwelling purposes, including single-family homes, apartments, and townhouses.

Inventories

Refers to the goods and materials that a business holds for the ultimate goal of resale, production, or utilization in manufacturing.