If the Current Rate of Interest Is 8%, Then the Future

question 20

Multiple Choice

If the current rate of interest is 8%, then the future value (FV) of an investment that pays $1 000 per year and lasts 20 years is closest to:

• A)$18 519
• B)$20 000
• C)$45 762
• D)$9 818

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Definitions:

Phenylketonuria

A genetic disorder characterized by the body's inability to break down the amino acid phenylalanine, leading to harmful accumulations.

Phenylalanine

An essential amino acid that is a building block of proteins, not synthesized by the human body, and thus must be obtained from the diet.

Tay-Sachs Disease

A serious genetic disease in which abnormal lipid metabolism in the brain causes mental deterioration in affected infants and young children; inheritance pattern is autosomal recessive.

Autosomal Recessive

A mode of inheritance in which a trait or disorder is expressed in individuals who have two copies of a mutant gene on one of the non-sex chromosomes (autosomes).