Suppose a family wants to save $60,000 for a child's tuition. The child will be attending college in 18 years. For simplicity, assume the family is saving for a one-time college tuition payment. If the interest rate is 6%, then about how much does this family need to deposit in the bank today?
A. $10,000
B. $42,000
C. $21,000
D. $57,000
Answer: C
You might also like to view...
If a life insurance company does NOT require a medical exam of its policyholders, it is most likely that the company
A) charges above-average premiums. B) charges below-average premiums. C) charges no premiums. D) has only very healthy policyholders.
During World War II, Hitler would often order his army to hold a particular town or river "at all costs." Was this rational? If so, explain. If not, indicate which economic idea it violated
To adjust GDP from market prices to factor cost:
a) Add indirect taxes b) Subtract subsidies c) Deduct indirect taxes and deduct subsidies d) Deduct indirect taxes and add subsidies
If a teacher was curious to see if collaboration among students leads to higher grades, which of the following models would be the best to use?
A. Traditional models B. Regression models C. Butterfly effect model D. Heuristic models