You are interested in accumulating $10,000 so that you can take a cruise in three years.If you try 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 present value.
D)a future value.

Question

Quizplus · Accepted Answer

The $10,000 represents a future value because it is the amount you aim to have in the future after investing a certain amount annually at a 6% interest rate.

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