Michaela Would Like to Have $10,000 for a European Vacation

question 55

Short Answer

Michaela would like to have $10,000 for a European vacation in four years.Currently,she has saved $8,000.If she puts $8,000 in an account that earns 6% interest,compounded annually,will she be able to take the vacation in four years?

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Definitions:

Material

Refers to the physical substances or components that are used to make or build something.

Trustee

An individual or organization that holds and administers property or assets for the benefit of a third party.

Beneficiary

An individual who receives benefits or is entitled to receive benefits from an insurance policy or trust.

Undue Influence

An improper or wrongful persuasion that compromises the free will of someone, making a decision or agreement questionable.