Asked by
Gabby Moonsammy
on Dec 14, 2024Verified
How much will Clarence have to invest at the end of every year at 11% compounded annually if he is going to accumulate $25,000 in five years?
A) $2,758.93
B) $3,870.52
C) $4,014.25
D) $4,989.01
E) $5,562.50
Compounded Annually
A method of interest calculation where interest is added to the principal once a year.
Accumulate
To gather or collect, often a gradual increase of items or value over time.
Invest
The act of allocating resources, usually money, with the expectation of generating an income or profit.
- Acquire the knowledge to assess the future value of investments with ongoing inputs.
Verified Answer
KM
Learning Objectives
- Acquire the knowledge to assess the future value of investments with ongoing inputs.