Sally Will Not Be Making Any Investments for Five Years

question 84

Multiple Choice

Sally will not be making any investments for five years as she is paying off student loans.In five years,she will make regular monthly investments,at the beginning of every month,in the amount of $350.She will make these investments for 25 years.What is the present value of her investment account assuming she can earn an annual return of 8.5%?

• A)$229,725
• B)$345,428
• C)$519,405
• D)$313,250

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Definitions:

Self-determination

refers to the process by which a person controls their own life, making choices and decisions based on their preferences and interests without undue influence from others.

Incentive

A factor, often a reward or punishment, that motivates an individual to perform an action or behave in a specific manner.

Need

A requirement necessary for survival or well-being.

Drive

An internal motivational state that compels an organism to engage in behavior necessary to satisfy a physiological need.