You Wish to Have $200,000 at the End of Twenty

question 162

Multiple Choice

You wish to have $200,000 at the end of twenty years. In the last five years, you withdraw $1,000 annually at a rate of 3.8% compounded quarterly. During the middle ten years, you contribute $500 monthly at a rate of 2.8% compounded semi-annually. Given this information, determine the initial deposit that has to be made at the start of the first five years at a rate of 4% compounded monthly.

• A) $13,056.65
• B) $12,056.65
• C) $11,056.65
• D) $10,056.65
• E) $9,056.65

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Definitions:

Granulomatous

Relating to granulomas, which are small areas of inflammation caused by tissue injury or infection.

Sarcoidosis

An inflammatory disease that affects multiple organs in the body, but mostly the lungs and lymph glands, characterized by the formation of granulomas.

Legionnaires Disease

A severe form of pneumonia caused by the Legionella bacteria, often spread through inhalation of contaminated water droplets.

Mycobacterium Tuberculosis

The bacterium that causes tuberculosis, a contagious infection that primarily impacts the lungs but can also affect other parts of the body.