Susan Is Planning to Accumulate $40,000 by the End of 5

question 63

Multiple Choice

Susan is planning to accumulate $40,000 by the end of 5 years by making 5 equal annual deposits. If she plans to make her first deposit today and can earn an annual compound rate of 9 percent on her investment, how much must each deposit be in order to accumulate the $40,000?

• A) $9,434
• B) $23,844
• C) $6,683
• D) $6,132

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Definitions:

Testosterone

A steroid hormone that plays a key role in the development of male reproductive tissues, as well as promoting secondary sexual characteristics.

Pigmented Hairs

Pigmented hairs are hairs that contain melanin, which gives hair its color, varying from person to person and changing with age.

Terminal Hairs

The thick, pigmented hairs that replace vellus hairs in certain body parts during puberty.

Lanugo

Fine, soft hair that covers the body of a fetus, serving as insulation before the development of fat layers.