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:

Individualism

The belief that the values and goals of the individual are primary.

Trustworthiness

The quality of being reliable and deserving of trust, important in establishing credibility and dependable relationships.

Leadership Advice

Guidance for leaders and managers on how to effectively lead teams and organizations, encompassing strategies for motivation, conflict resolution, and decision-making.

Strategic Focus

The process of setting priorities, concentrating resources, and ensuring that all efforts align with long-term objectives.