Stephen Michaels Wants to Know How Much He Must Deposit

question 88

Multiple Choice

Stephen Michaels wants to know how much he must deposit today at 12% interest to provide three equal annual withdrawals of $10,000, beginning one year from now. This is an example of the present value of

• A) an ordinary annuity.
• B) an annuity due.
• C) a single sum.
• D) a deferred annuity.

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Definitions:

Support System

A network of people who provide an individual with practical or emotional support.

Project Plan

A formal document that outlines the steps, timeline, and resources necessary to complete a project.

Discretionary Time

Free or leisure time available to an individual that can be used according to personal discretion, without obligations.

Committed Time

Time periods allocated towards fulfilling specific, usually pre-planned, obligations or activities.