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:

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The aptitude for comprehending, overseeing, and expressing personal emotions, coupled with the capability to conduct oneself thoughtfully and empathically in dealings with others.

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The capability to succeed in educational settings, often measured by tests and assessments designed to evaluate one's learning potential or intellectual ability.