You are interested in accumulating $10,000 so that you can take a cruise in 3 years. If you trying to solve for the amount that you need to invest each year, earning 6% interest compounded annually, the $10,000 represents:
A) the amount to invest.
B) an annuity.
C) a future value.
D) a present value.

Question

Quizplus · Accepted Answer

The $10,000 represents the future value, which is the amount you want to have in 3 years after earning interest on your investments.

You Are Interested in Accumulating $10,000 So That You Can