You Inherited $25,000 Today and Placed It in an Account

question 46

Multiple Choice

You inherited $25,000 today and placed it in an account that earns an 8% annual rate of return.What will be the value of the account after 25 years?

• A)$50,000
• B)$110,897
• C)$121,307
• D)$171,212

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Definitions:

Multilateral Investment Guarantee Agency

An international financial institution that offers political risk insurance and credit enhancement to investors and lenders to encourage investment in developing countries.

World Bank

A global financial organization that offers loans and grants to less wealthy nations to help them undertake capital projects.

Developing Nations

Countries with a lower standard of living, underdeveloped industrial base, and low Human Development Index relative to other countries.

Foreign Corrupt Practices Act

A U.S. law that prohibits American companies and their subsidiaries from bribing foreign officials to retain or obtain business.