You Are Going to Withdraw $1,000 at the End of Each

question 375

Multiple Choice

You are going to withdraw $1,000 at the end of each year for the next three years from an account that pays interest at a rate of 8% compounded annually. The account balance will reduce to zero
When the last withdrawal is made. How much interest will you earn on the account over the three
Year life?

• A) $70.00
• B) $240.00
• C) $422.90
• D) $576.24
• E) $3,000.00

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Definitions:

Nitrobenzene

An organic compound consisting of a benzene ring substituted with a nitro group (-NO2), used in the synthesis of aniline.

Anisole

An organic compound, specifically an ether, derived from methoxybenzene, used in perfume and pharmaceuticals.

Chlorobenzene

An aromatic organic compound with a chlorine atom substituting one hydrogen atom in benzene, used in the production of pesticides and industrial solvents.

Electrophilic Aromatic Substitution

Electrophilic aromatic substitution is a type of organic reaction in which an electrophile replaces a hydrogen atom in an aromatic ring, forming a new substituent on the ring.