Question

Five years ago, Rhea put $20,000 into savings. Now it's worth $30,000. Which of the following statements is true for this situation?

Answer 1

Rhea's savings increased by $10,000 over the five-year period.

Step-by-step explanation:

In this situation, the initial amount of money Rhea put into savings was $20,000, and now it is worth $30,000. To find the increase in value, we can subtract the initial amount from the final amount: $30,000 - $20,000 = $10,000. This means that Rhea's savings increased by $10,000 over the five-year period.

Answer 2

Present value of $30,000 is $20,000 Future Value of $30,000 is $20,000 Present value of $20,000 is $30,000