The Solution to This Problem Requires Time Value of Money

question 126

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. Ralph wants to save some money so that he can make a down payment of $3,000 on a car when he graduates from college 4 years from now.If he opens a savings account and earns 3% on his money,compounded annually,how much will he have to invest now?

• A)$2,520
• B)$2,664
• C)$2,910
• D)$3,000

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Definitions:

Resigned

The act of formally giving up a position or office, often in a professional context.

Died in Office

Refers to officials or leaders who passed away while still holding their elected or appointed positions.

Office of Management

A governmental bureau or department responsible for overseeing the administration and budgeting processes within the public sector, ensuring efficient operation and resources allocation.

Annual Budget

A financial document that projects income and expenditures for a specific year.