Find the Value of an Annuity

question 114

Multiple Choice

Find the Value of an Annuity
-To save for retirement, you decide to deposit $2250 into an IRA at the end of each year for the next 40 years. If the interest rate is 8% per year compounded annually, find the value of the IRA after 40 years.

• A) $582,877
• B) $46,630
• C) $537,618
• D) $13,779,108

Recognize the importance of change management and the traits needed to effectively implement changes.

Understand the principles and art of effective negotiation.

Differentiate between the roles and characteristics of leaders and managers.

Comprehend the essence of vision in leadership and business direction.

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Definitions:

Coefficient Of Determination

A measure, usually represented as R^2, that shows the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Variance

A measurement of the spread between numbers in a data set, signaling how far each number in the set is from the mean.

MSE

Mean Squared Error, a measure of the average squared differences between the estimated values and the actual value, indicating the quality of an estimator.

SSE

Sum of Squares due to Error, a measure used in statistical analysis to quantify the discrepancy between the observed and predicted data values.