Ann Ruth Wants to Invest a Certain Sum of Money

question 16

Multiple Choice

Ann Ruth wants to invest a certain sum of money at the end of each year for five years.The investment will earn 6% compounded annually.At the end of five years, she will need a total of $40,000 accumulated.How should she compute her required annual invest-ment?

• A)$40,000 times the future value of a 5-year, 6% ordinary annuity of 1.
• B)$40,000 divided by the future value of a 5-year, 6% ordinary annuity of 1.
• C)$40,000 times the present value of a 5-year, 6% ordinary annuity of 1.
• D)$40,000 divided by the present value of a 5-year, 6% ordinary annuity of 1.

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Definitions:

Lung Capacity

The total volume of air that the lungs can hold after maximum inhalation.

Chest X-ray

A radiographic image of the chest used to diagnose, monitor, and treat conditions affecting the chest and lungs.

Stylus

A pen-like instrument that records electrical impulses on ECG paper.

ECG Paper

Specialized graph paper used for printing electrocardiogram results, featuring grids that assist in the measurement and analysis of heart rhythms.