Items 65 Through 68 Apply to the Appropriate Use of Interest

question 143

Multiple Choice

Items 65 through 68 apply to the appropriate use of interest tables. Given below are the future value factors for 1 at 8% for one to five periods. Each of the items 65 to 68 is based on 8% interest compounded annually.

-What amount will be in a bank account three years from now if $8,000 is invested each year for four years with the first investment to be made today?

• A) ($8,000 × 1.260) + ($8,000 × 1.166) + ($8,000 × 1.080) + $8,000
• B) $8,000 × 1.360 × 4
• C) ($8,000 × 1.080) + ($8,000 × 1.166) + ($8,000 × 1.260) + ($8,000 × 1.360)
• D) $8,000 × 1.080 × 4

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Definitions:

Developmental Stage

Phases through which an individual progresses over their lifetime, experiencing predictable physiological and psychological changes.

Middle Adulthood

Middle adulthood is a stage of life typically ranging from about 40 to 65 years old, characterized by physical, emotional, and social transitions, including reevaluation of life achievements and goals.

Eriksonian Orientation

A reference to the theories of psychologist Erik Erikson, especially his stages of psychosocial development.

Developmental Task

A milestone or challenge that is typical at a certain age, accomplishment of which is crucial for successful progression to further stages of development.