Twenty Years from Now, You Want to Spend $175,000 for a Fancy

question 27

Multiple Choice

Twenty years from now, you want to spend $175,000 for a fancy car. How much must you deposit as a lump sum today to achieve this goal at an annual interest rate of 6.6 percent?

• A) $54,208.16
• B) $48,740.95
• C) $57,911.08
• D) $40,019.82
• E) $51,446.60

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Definitions:

Late Childhood

A stage in human development that occurs from around the age of 6 until puberty, characterized by physical, cognitive, and social changes.

Neurotic Needs

Psychological desires or tendencies developed in response to anxiety and leading to unhealthy or maladaptive behavior.

Basic Anxiety

A concept in psychoanalytic theory referring to feelings of insecurity and apprehension that arise from living in a hostile world.

Adult Personality

The combination of characteristics or qualities that form an individual's distinctive character in adulthood, shaped by various factors including genetics, life experiences, and psychological development.