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:

Marital Conflict

Disagreements and disputes between married individuals, ranging from minor disagreements to more severe ongoing issues that can impact the relationship's health.

School Readiness

The phase at which a child is prepared, in terms of development, behavior, and academic knowledge, to enter and succeed in a school environment.

Maternal Employment

The participation of mothers in the workforce, which can have various impacts on family dynamics, child development, and socioeconomic status.

Pygmalion Effect

The phenomenon where higher expectations lead to an increase in performance; a form of self-fulfilling prophecy.