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

question 150

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 money will be in the account immediately after the second withdrawal is made?

• A) $925.93
• B) $977.10
• C) $982.29
• D) $1,000.00
• E) $2,000.00

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Definitions:

Obstetrician

A medical doctor who specializes in the care of women during pregnancy, childbirth, and the postpartum period.

-ian

A suffix used to form adjectives and nouns indicating belonging or pertaining to a person, place, thing, or idea.

-cian

A suffix indicating a person's profession or a specialized field of expertise.

Nasolabial

Relating to the nose and the upper lip, particularly the crease or fold running from the side of the nose to the corner of the mouth.