Future Value: Brittany Willis Is Looking to Invest for Retirement

question 4

Multiple Choice

Future value: Brittany Willis is looking to invest for retirement, which she hopes will be in 20 years. She is looking to invest $22,500 today in U.S. Treasury bonds that will earn interest at 6.25 percent annually. How much will she have at the end of 20 years? (Round to the nearest dollar.)

• A) $68,870
• B) $50,625
• C) $75,642
• D) None of the above

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Definitions:

Color Bands

Colored stripes on components such as resistors that represent numbers according to a standardized code, used to indicate their value, tolerance, and sometimes temperature coefficient.

Ohmic Value

The resistance value of a component or material, typically measured in Ohms (Ω), indicating how much it resists the flow of electric current.

Fixed

In an electrical or mechanical context, "fixed" typically refers to components that are stationary, unchanging, or permanently set in a particular configuration.

Voltage Dividers

Circuits that reduce voltage to a lower value, using a series connection of resistors or other components to distribute the input voltage into smaller outputs.