Salem Plans to Deposit $2200 Every 6 Months for 15

question 23

Multiple Choice

Salem plans to deposit $2200 every 6 months for 15 years to save for his son's higher education. The rate of return will be 4% compounded semi-annually for the first 5 years and 8% compounded semi-annually for the subsequent 10 years. Calculate the future value of this simple annuity, if he stops payment after 5 years.

• A) $24 089.39
• B) $52 782.81
• C) $53 454.21
• D) $106 237.02
• E) $118 293.81

---

Definitions:

Schemata

Schemata are cognitive frameworks or concepts that help individuals organize and interpret information, based on their past experiences and knowledge.

Serial Reproduction

A method in psychological research where information is passed from one individual to another sequentially, often used to study how information changes or degrades over repeated transmissions.

Exhaustive Reconstruction

A detailed and comprehensive method of attempting to recreate or rebuild information or an event from memory in its entirety.

Becomes More Distorted

Refers to the process by which information, images, or perceptions are altered or twisted from their original form, becoming less accurate over time or through transmission.