You are trying to accumulate $2,000 at the end of 5 years by contributing a fixed amount at the end of each year.You initially decide to contribute $300 per year but find that you are coming up short of the $2,000 goal.What could you do to increase the value of the investment at the end of year 5?

Question

Quizplus · Accepted Answer

By investing in an investment that has a higher rate of return, you can increase the value of the investment at the end of year 5. This can help you reach your goal of accumulating $2,000. Alternatively, making a sixth year contribution could also help you reach your goal, but it would require additional time and effort. A lower rate of return or contributing a smaller amount each year would not be effective in reaching your goal.

You Are Trying to Accumulate $2,000 at the End of 5