An example of a present value calculation is determining how much money to save today to accumulate a sum of $10,000 in five years.

Question

Question 18 options:

True

False
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Question 19 (2 points)
Bank ATM charges may be substantial if you make many transactions monthly and use out of network machines.
Question 19 options:

True

False

Answer 1

For Question 18, the statement is True. A present value calculation determines how much money you need to save today to reach a specific future sum, like $10,000 in five years.

For Question 19, the statement is also True. Using out-of-network ATMs can lead to additional fees, and if you make many transactions, these fees can add up significantly.