If You Invest $1,200 Per Year at the End of Each

question 53

Multiple Choice

If you invest $1,200 per year at the end of each year for 40 years at an 8% rate of return,you will have accumulated (use time value table or financial calculator)

• A)$ 48,000.
• B)$ 51,840.
• C)$310,862.
• D)$379,000.
• E)$384,000.

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Definitions:

Creditor

An individual or institution that lends money or extends credit to another entity.

Settle

Completing a financial transaction by exchanging the payment of instruments between parties involved.

Discounting

The process of determining the present value of a payment or a stream of payments that is to be received in the future.

Opposite

In the context of numbers, it refers to the additive inverse of a number, which when added to the original number, results in zero.