Your Employer Has Agreed to Make 80 Quarterly Payments of $400

question 47

Multiple Choice

Your employer has agreed to make 80 quarterly payments of $400 each into a trust account to fund your early retirement.The first payment will be made 3 months from now.At the end of 20 years (80 payments) , you will be pa 10 equal annual payments, with the first payment to be made at the beginning of Year 21 (or the end of Year 20) .Th funds will be invested at a simple rate of 8.0 percent, quarterly compounding, during both the accumulation and the distribution periods.How large will each of your 10 receipts be? (Hint: You must find the EAR and use it in one of your calculations.)

• A)$7,561
• B)$10,789
• C)$11,678
• D)$12,342
• E)$13,119

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Definitions:

Communications Revolution

The Communications Revolution signifies a dramatic change in the way communication occurs, facilitated by technological advancements such as the internet, mobile communications, and social media platforms.

Colonists

Individuals who settle in a new land or territory but maintain ties with their country of origin, often involved in the process of establishing new communities or colonies.

Dissemination of Information

The process of spreading information widely, through various means such as publishing, broadcasting, or the Internet, to make it accessible to a broad audience.

Diaspora

Diaspora refers to the dispersion of any people from their original homeland to multiple locations around the world, often maintaining cultural or social connections with their place of origin.