Theo Wants to Have $40,000 for a Down Payment on a House

question 43

Multiple Choice

Theo wants to have $40,000 for a down payment on a house five years from now. He can either deposit one lump sum today or he can wait one year and deposit a lump sum. Assume an annual interest rate of 3.5 percent. How much additional money must he deposit if he waits for one year rather than making the deposit today?

• A) $1,001.98
• B) $986.13
• C) $1,178.76
• D) $948.03
• E) $1,020.18

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Definitions:

Lung Disease

A general term for illness or disorders affecting the lungs, which can impact breathing and oxygen exchange in the body.

High Fowler's Position

A bed position where the head of the bed is elevated 60 to 90 degrees, commonly used to aid breathing and reduce pressure on the abdomen.

Evidence-Based Practice

A decision-making approach that integrates clinical expertise with the best available research evidence and patient preferences to improve health outcomes.

Cost-Efficient

The attribute of being economical in the expenditure of resources, ensuring maximum output for the minimum input.