Which of the Following Decisions Would Involve the Use of the Future

question 43

Multiple Choice

Which of the following decisions would involve the use of the future value of $1?

• A) Your brother buys your car and offers to pay you $500 now or $1,500 in two years.
• B) You win a lawsuit and are offered a lump-sum payment today of $100,000 or $15,000 a year for 20 years.
• C) Your father and mother wish to deposit enough money on the date of your high school graduation to enable you to take a $7,000 cruise when you graduate from college in 4 years.
• D) You want to have $1,000,000 in order to retire at age 55, but need to know how much you will need to deposit each year from now until your 55th birthday.

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Definitions:

Easy

denotes something that can be achieved or understood with minimal effort or difficulty.

Difficult

Involving hard work, effort, or complexity that makes a task or situation challenging to execute or resolve.

Slow to Warm Up

Describes individuals, particularly children, who display a cautious approach to new experiences or people, taking longer to adapt or become comfortable.

Eating Routines

Established habits or patterns of eating behavior, which can include meal timing, frequency, and dietary choices.