How Much Would You Deposit Today in a Savings Account

question 13

Multiple Choice

How much would you deposit today in a savings account that earns 10%, in order that you can make equal annual withdrawals of $1,200 each at the end of each of the next 15 years?

• A) $5,013
• B) $9,127
• C) $19,800
• D) $18,000
• E) $38,127

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Definitions:

Economic Independence

The state of having sufficient financial resources to sustain a living without relying on employment, support from family, or governmental assistance.

Communist Party

A political party advocating for the principles of communism, including the abolition of private property and the establishment of a classless society.

Agrarian Lifestyle

A way of life centered around agriculture and farming, often characterized by a strong connection to the land and rural communities.

Religious Beliefs

The faith-based principles and convictions that individuals or groups hold regarding spiritual matters and divine entities.