Using the Future Value Table, a Student Found That the Future

question 78

Multiple Choice

Using the future value table, a student found that the future value amount of $1 for 5 years at an annual interest rate of 10% is 1.611.The student also observed that the future value of $1 for 5 years at 10% compounded semiannually is 1.629.This means that

• A) the more often the compounding, the higher the future value.
• B) the student was looking in the wrong column; the second amount should be 1.611/2.
• C) there was an error in the table.
• D) when interest is compounded semiannually, more money must be deposited to have a desired ending balance.

---

Definitions:

Cultural Storytelling

The use of narratives and stories to convey cultural values, beliefs, and histories, often to educate or entertain, while strengthening communal bonds.

Authenticity Deficit

Refers to a gap between a brand's messaging and its actual behaviors or product experiences, leading to consumer skepticism or mistrust.

Lack of Character

A term often applied to brands or products that fail to exhibit distinguishing traits, qualities, or a strong identity.

Cultural Branding Model

A framework for building brands based on cultural narratives and myths that resonate deeply with consumers, often weaving the brand into the fabric of society.