If You Want to Have $10,000 in 10 Years,which of the Following

question 6

Multiple Choice

If you want to have $10,000 in 10 years,which of the following formulas represents how much money you must put in a savings account today? Assume that the savings account pays 6% and it is compounded monthly.

• A)10,000/(1 + .05)¹⁰
• B)10,000/(1 + .005)¹²⁰
• C)10,000/(1 + .06)¹⁰
• D)10,000/(1 + .006)¹²⁰

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Definitions:

Promisor

An individual or entity that makes a promise to perform an act or fulfill an obligation as specified in a contract.

Obtained

Acquired or secured something, typically through purchase, request, or effort.

Degree

An academic award conferred by colleges and universities to signify the completion of a course of study.

Accord And Satisfaction

An agreement for payment (or other performance) between two parties, one of whom has a right of action against the other. After the payment has been accepted or other performance has been made, the “accord and satisfaction” is complete, and the obligation is discharged.