An Investor Is Considering Depositing $20,000 in an Account Earning

question 191

Multiple Choice

An investor is considering depositing $20,000 in an account earning 5% compounded quarterly for the next three years. Afterwards, he will take this amount and contribute $200 quarterly for the next four years at a rate of 4% compounded semi-annually. Finally, over the next two years, he will withdraw $1,000 annually at a rate of 3.5% compounded monthly. Determine the future value at the end of this time period.

• A) $33,833.94
• B) $30,833.94
• C) $27,833.94
• D) $24,833.94
• E) $21,833.94

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Definitions:

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A chronic condition characterized by high levels of sugar in the blood, due to the body's inability to produce or properly use insulin.