If You Want to Have $1,700 in Seven Years, How

question 79

Multiple Choice

If you want to have $1,700 in seven years, how much money must you put in a savings account today? Assume that the savings account pays 6% and it is compounded quarterly (round to the nearest $10) .

• A) $1,120
• B) $1,130
• C) $1,110
• D) $1,140

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Definitions:

NORM.DIST

A function in statistics that returns the normal distribution for a specified mean and standard deviation.

Standard Error

The standard deviation of the sampling distribution of a statistic, often used to estimate the precision of a sample mean.

Population Standard Deviation

A measure of the dispersion of a set of data values from their mean, calculated for the entire population.

Sample Size

The number of observations or items selected from a population to constitute a sample for the purpose of statistical analysis.