You Need to Have $15,000 in Five Years to Pay

question 125

Multiple Choice

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) $13,184
• D) $12,250

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Definitions:

Unemployment Rate

The share of the workforce that's currently not employed but is actively looking for jobs.

Nominal NNP

The Gross National Product measured at current market prices, without adjusting for inflation.

Real NNP

Net National Product adjusted for inflation; measures the value of goods and services produced by a country's economy, less the value of goods and services used up in production, adjusted for price changes.

Price Index

A statistical measurement that tracks changes in the price level of a basket of goods and services over time.