Alva Thomas Has Decided to Place $10,000 in an Account

question 1

Multiple Choice

Alva Thomas has decided to place $10,000 in an account payable to his alma matter when he dies. If the account grows at an annual rate of 6% compounded monthly and he lives for another 10 years, the university will receive

• A) 10,000(1 + .06)10
• B) 10,000(1 + .005)120
• C) 10,000(1 + .06)120
• D) 10,000/(1 + .005)120

---

Definitions:

Time Series

A sequence of data points collected or recorded at successive points in time, typically with equal intervals between them.

Seasonal Index

A factor used in time series analysis that adjusts for the seasonality of data, reflecting typical fluctuations that occur at specific times of the year.

Deseasonalized

The process of removing seasonal effects from a time series in order to identify underlying trends.

Linear Model

A statistical model that assumes a linear relationship between the input variables (independent) and the single output variable (dependent).