You Are Going to Withdraw $1,000 at the End of Each

question 373

Multiple Choice

You are going to withdraw $1,000 at the end of each year for the next three years from an account that pays interest at a rate of 8% compounded annually. The account balance will reduce to zero when the last withdrawal is made. How much interest will you earn on the account over the three year life?

• A) $70.00
• B) $240.00
• C) $422.90
• D) $576.24
• E) $3,000.00

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Definitions:

Electrical Potential Difference

The difference in electric potential between two points, which causes electric current to flow if a path is provided.

Cerebral Cortex

The outer layer of the cerebrum in the brain, involved in numerous high-level functions including thought, memory, attention, perception, and consciousness.

Delta Waves

Slow brain waves with a frequency of 1-4 Hz, typically associated with deep stages of sleep and brain development in infants.

EEG Waves

The patterns of electrical activity in the brain recorded by EEG, indicative of different states of brain function or pathology.