Multiple Compounding (PV): You Need to Have $15,000 in Five

question 65

Multiple Choice

Multiple compounding (PV) : You need to have $15,000 in five years to pay-off a home equity loan. You can invest in an account that pays 5.75 percent compounded quarterly. How much will you have to invest today to attain your target in five years? (Round to the nearest dollar.)

• A) $4,903
• B) $11,275
• C) $14,184
• D) $12,250

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Definitions:

Productive Organizations

Entities that are efficient in converting inputs into outputs, leading to high levels of output per employee or resource.

Global Network

An interconnected system of communication and technology spanning across geographical boundaries worldwide.

Internet

A global network of computers that allows for the communication, exchange, and sharing of information across vast distances through interconnected networks using standardized communication protocols.

Design-It-In Approach

A proactive strategy in product development focusing on incorporating essential features, performance measures, and compliance aspects from the beginning, to prevent problems rather than fixing them later.