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:

Physical Health

The overall condition of an individual's body, including the absence of disease, physical fitness, and the proper functioning of all bodily systems.

Middle And Late Adulthoods

The stages of human development following early adulthood, typically characterized by continued physical, cognitive, and sociocultural changes.

Social Clock

The culturally preferred timing of social events such as marriage, parenthood, and retirement.

Developmental Norm

Average milestones or standards of development that typically occur in children or people at certain ages, used to measure growth or developmental progress.