Present Value: Jack Robbins Is Saving for a New Car

question 1

Multiple Choice

Present value: Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar.)

• A) $22,680
• B) $26,454
• C) $16,670
• D) $19,444

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Definitions:

Growth Spurt

A rapid increase in height and weight that occurs during puberty due to hormonal changes.

Intellectual Growth

The development of mental capacity and cognitive skills, allowing for more complex understanding, problem-solving, and knowledge acquisition over time.

Testosterone Levels

The concentration of the hormone testosterone in the bloodstream, significant for both male development and female health.

Gradual Decline

A steady and slow decrease in condition, quality, or capacity over time, often observed in physical and cognitive functions with aging.