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:

Past Five Years

The period extending back from the current date to the same calendar date five years prior.

Code of Ethics

A set of guidelines designed to set out acceptable behaviors for members of a particular group, profession, or organization.

Confidentiality

The ethical principle that mandates not sharing private information about a client or patient without their consent.

Client's Consent

Informed agreement by a client or patient to undergo a specific medical or psychological treatment or procedure, after understanding its risks and benefits.