How Much Must Be Invested Now at 9% Interest to Accumulate

question 90

Multiple Choice

How much must be invested now at 9% interest to accumulate to $10,000 in five years?

• A)$9,176.
• B)$6,499.
• C)$5,500.
• D)$5,960.PV = $10,000 x .64993* = $6,499 *PV of $1: n=5; i=9%

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Definitions:

Liquidated Damages

refers to a predetermined sum agreed upon by the parties to a contract, to be paid as compensation in case of breach of contract.

Exemption Clause

A contract term that attempts to limit or exclude liability for certain events or damages.

Deposit Forfeiture

A legal or contractual process wherein a deposit made as part of a transaction is lost due to non-compliance with the terms of the agreement.

Exemption Clause

A contractual term that limits or excludes one party's liability for certain breaches, circumstances, or events.