A Future Amount Is the Dollar Amount to Which a Present

question 25

Multiple Choice

A future amount is the dollar amount to which a present value will ________ over time.

• A)diminish
• B)accumulate
• C)disappear
• D)maintain

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Definitions:

Contract

A binding legal agreement between two or more parties that is enforceable by law, specifying obligations each must fulfill.

Adult

An individual who has reached the age of maturity as defined by law, typically 18 years old in many countries, which qualifies them for full legal rights and responsibilities.

Minor

A person under the age of majority, legally recognized as not having the full legal capacity and rights of an adult.

Disaffirm

The legal right of a party to renounce or reject a contract, especially used in cases where one party is a minor or was deceived.