If You Start Making $100 Monthly Contributions Today and Continue

question 138

Multiple Choice

If you start making $100 monthly contributions today and continue them for five years, what is their future value if the compounding rate is 10 percent APR? What is the present value of this annuity?

• A)$508.14, $487.74
• B)$512.64, $491.80
• C)$7,743.71, $4,706.53
• D)$7,808.24, $4,745.78

---

Definitions:

F Test

A statistical test used to compare the variances of two populations and determine if they are significantly different from each other.

Significance Level

A threshold within hypothesis testing that defines the probability of rejecting the null hypothesis when it is actually true, denoted by alpha.

Speed Limits

Regulatory maximum or minimum speeds set for vehicles on certain roads to ensure safety and flow of traffic.

Highway Patrol

A law enforcement body primarily concerned with monitoring and enforcing rules on public roads, especially highways, for safety and compliance.