If You Want to Have $10,000 in 10 Years,which of the Following

question 38

Multiple Choice

If you want to have $10,000 in 10 years,which of the following formulae represents how much money you must put in a savings account today? Assume that the savings account pays 6% and it is compounded monthly.

• A)10,000/(1 + .05)10
• B)10,000/(1 + .005)120
• C)10,000/(1 + .06)10
• D)10,000/(1 + .006)120

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Definitions:

Independent Variable

The variable in an experiment that is manipulated to observe its effect on a dependent variable.

Positive Correlation Coefficient

A statistical measure indicating that as one variable increases, the other variable tends to increase as well.

Covary

Refers to the phenomenon where two variables change in relation to each other, often used in statistical analysis to understand correlations.

Self-report Measures

Assessment tools that rely on individuals' own accounts of their feelings, behaviors, or attitudes, often through questionnaires or surveys.