Roy, Who Has Just Turned 40, Would Like to Have

question 69

Multiple Choice

Roy, who has just turned 40, would like to have an annual annuity of $20,000 paid over a 20-year period, the first payment occurring on his 66th birthday. How much must Roy save each year (end of year) for the next 25 years to have this annuity, if the investment will earn 12 percent compounded annually?

• A) $16,000
• B) $19,046
• C) $1,120
• D) $944.10

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Definitions:

Myocardium

The muscular layer of the heart wall responsible for the heart's pumping action.

Endocardium

The innermost layer of tissue that lines the chambers of the heart and is continuous with the inner lining of blood vessels.

Pints Of Blood

A measurement unit for blood, commonly used in transfusions and donations, with one pint equaling approximately 473 milliliters.

Endocardium

The innermost lining of the heart, which provides a smooth surface for blood to flow within the heart chambers and valves.