You Would Like to Deposit a Sum of Money Today

question 46

Multiple Choice

You would like to deposit a sum of money today that would enable you to withdraw $2,000 a year for ten years. If the interest paid on the amount deposited is 10% compounded annually and if the first withdrawal is made one year from today, the formula you would use to determine the amount of the initial deposit is the

• A) present value of a deferred annuity.
• B) present value of an annuity due.
• C) present value of an ordinary annuity.
• D) future value of an ordinary annuity.

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Definitions:

6th Month

denotes a stage in human development, specifically in prenatal growth or infant life, where significant physical and neurological developments occur.

Zygote

The single cell formed at conception from the union of the sperm and the ovum.

Identical Cells

Cells that are genetically the same, typically resulting from the division of a single original cell.

Blastocyst

A structure formed in the early development of mammals, consisting of a sphere made up of an outer layer of cells, a fluid-filled cavity, and a cluster of cells on the interior.