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Question - 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?
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?
a. invest in an investment that has a lower rate of return.
b. invest in an investment that has a higher rate of return.
c. make a sixth-year contribution.
d. contribute a smaller amount each year.
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