Your Bank Pays 9% Interest, Compounded Annually

question 27

Multiple Choice

Your bank pays 9% interest, compounded annually. Use the appropriate formula to find how much you should deposit now to yield an annuity payment of $800 at the END of each year, for 10 years.

• A) $5,134.13
• B) $6,099.86
• C) $5,596.20
• D) $6,454.28

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Definitions:

Medication

Substances used to diagnose, treat, cure, or prevent disease, aiming to improve health conditions.

Expiration Date

The date until which a product, such as food, medicine, or chemical, is deemed safe to use or consume.

Intramuscular Injections

A method of delivering medication deep into the muscles, allowing for faster absorption than subcutaneous injections.

Needles

Sharp, pointed instruments attached to syringes for the purpose of piercing the skin to inject substances into the body or extract fluids.