Your Company Must Make Payments of $100,000 Each Year for 10

question 80

Multiple Choice

Your company must make payments of $100,000 each year for 10 years, with the first payment to be made 10 years from today.To prepare for these payments, your company must make 10 equal annual deposits into an account whic pays a simple interest rate of 7 percent, daily compounding (360-day year) .Funds will remain in the account during both the accumulation period (the first 10 years) and the distribution period (the last 10 years) , and the same interest rate will be earned throughout the entire 20 years.The first deposit will be made immediately.How large must each deposit be?

• A)$47,821.11
• B)$49,661.86
• C)$51,234.67
• D)$52,497.33
• E)$53,262.39

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Definitions:

Physiological Functioning

Refers to the normal and healthy operations of bodily organs and systems, which support life and maintain homeostasis.

Psychological Functioning

The way in which individuals' cognitive, emotional, and behavioral functions operate, often in the context of their well-being.

Activation-synthesis Theory

A theory about dreaming that posits dreams are the brain's attempt to make sense of random neural activity that occurs during sleep.

Cognitive Theory

A theory in psychology that emphasizes the importance of mental processes in understanding behavior, including perception, memory, and decision-making.