How Much Must You Deposit at the End of Each

question 45

Multiple Choice

How much must you deposit at the end of each of the next 10 years in a savings account paying 5% annually in order to have $10,000 saved by the end of the 10th year?

• A) $1,000
• B) $1,638
• C) $1,500
• D) $795

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Definitions:

Retroactive APR

Annual Percentage Rate that is applied to charges made previously, often after a promotional period ends or due to a late payment.

Monthly Periodic Rate

The APR divided by 12; the rate of interest charged each month.

Finance Charge

The interest that is charged to a buyer when paying for a purchase or service over time.

Finance Charges

The total cost of borrowing, including interest and other fees, charged on credit accounts or loans.