The Solution to This Problem Requires Time Value of Money

question 19

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations.
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If Vito has $5,000 per year to invest for ten years and wants to accumulate $87,745 at the end of that time,he must find an investment that is earning at a rate of

• A)15%.
• B)12%.
• C)11%.
• D)6%.

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Definitions:

Message Component

Elements or parts of a message that contribute to its overall meaning and effectiveness in communication, such as content, tone, and context.

Linguistic Style

The distinct manner or pattern of speech and language usage that characterizes an individual, group, or context.

Fear-Arousing

A communication strategy designed to elicit fear in order to influence attitudes or behaviors.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, values, or ideas at the same time.