You Are Interested in Accumulating $10,000 So That You Can

question 75

Multiple Choice

You are interested in accumulating $10,000 so that you can take a cruise in three years.If you try to solve for the amount that you need to invest each year,earning 6% interest compounded annually,the $10,000 represents

• A)the amount to invest.
• B)an annuity.
• C)a present value.
• D)a future value.

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Definitions:

Schemas Associated

Mental structures that represent aspects of the world and influence understanding, recognition, and recall by organizing information.

Chinese Language

A group of languages used in China, of which Mandarin is the most widely spoken variety.

Accommodation

In psychology, the process by which individuals adjust their mental frameworks to incorporate new information; in eyesight, the eye's ability to focus on objects at various distances.

Assimilation

The cognitive process by which individuals integrate new information into their existing knowledge structures or schemas.