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:

Living Trusts

Legal documents that allow individuals to place assets in a trust to be managed by a trustee for the benefit of the beneficiaries, which can be altered or revoked during the grantor's lifetime.

Established

Something that has been in existence for a long time and is therefore recognized and accepted.

Administered

The act of managing or supervising the execution, use, or conduct of operations, laws, or policies.

Distal Convoluted Tubules

Tubes in the kidney where filtration, reabsorption, and secretion occur, resulting in the formation of urine.