The FV_IFA for the Future Value of an Annuity Is

question 28

Multiple Choice

The FV_IFA for the future value of an annuity is 4.5 at 10% for 4 years. If we wish to accumulate $8,000 by the end of 4 years, how much should the annual payments be?

• A) $2,500
• B) $2,000
• C) $1,778
• D) $2,200

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Definitions:

ERG Theory

A motivational theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth, suggesting that individuals are motivated to satisfy these needs.

Clayton Alderfer

An American psychologist known for his expansion of Maslow's hierarchy of needs with the development of the ERG (Existence, Relatedness, Growth) theory.

Hierarchy of Needs

A psychological theory proposed by Abraham Maslow that depicts human motivations as a five-tier model of hierarchical needs, ranging from basic (physiological) to higher-order (self-actualization) needs.

Self-Actualization Need

The highest level in Maslow's hierarchy of needs, referring to the realization and fulfillment of one's talents and potentialities.