Sandy Wants to Know How Much She Needs to Save

question 55

Multiple Choice

Sandy wants to know how much she needs to save today to have $5,000 in five years at a 7% interest rate.Which of the following tables should she use?

• A) Present value of $1
• B) Present value of an ordinary annuity
• C) Future value of $1
• D) Future value of an ordinary annuity

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Definitions:

Sponsored Content

A type of advertising medium where content is created and placed for the purpose of promoting a product, service, or brand, designed to blend in with the platform's natural content.

Revenue Model

The framework for generating financial income from the business operations, detailing the sources of revenue and the process of how it is earned.

Costs of Goods Sold

The out-of-pocket costs associated with the production of a company's sold goods, encompassing labor and materials.

Operating Expenses

The costs associated with running the day-to-day operations of a business.