Joe Expects to Receive a Gift of $1,000 When He

question 1

Multiple Choice

Joe expects to receive a gift of $1,000 when he graduates one year from today.Joe can invest his gift at 6% compounded annually and he would like to use the funds in four years to purchase an engagement ring for Mabel.How much will he have in four years to spend on a ring?

• A) $1,191.02
• B) $1,180.00
• C) $1,200.00
• D) $1,262.48
• E) $1,175.00

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