The Following Computation Took Place: $20,000 Divided by the Future

question 27

Multiple Choice

The following computation took place: $20,000 divided by the future value of a 12-year, 4% ordinary annuity
What question will this computation answer?

• A) How much must be invested now so that equal payments can be withdrawn at the end of each year for 12 years?
• B) How much must be invested now so that $20,000 is accumulated by the end of the 12^th year?
• C) How much will be available at the end of the12th year if a payment of $20,000 is deposted now?
• D) How much must be deposited at the end of every year so that $20,000 is available at the end of 12 years?

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Definitions:

Experiments

Methodical trials or tests carried out under controlled conditions to investigate hypotheses, observe effects, and establish causation in scientific studies.

Statistically Significant

A measure indicating that the likelihood of an observed effect occurring by chance is low, often used in research to validate findings.

Experimental Method

A research method that tests hypotheses and establishes causality by using control and experimental groups and manipulating independent variables.

Representative Sample

A subset of a population that accurately reflects the members of the entire population.