I Can Invest for a Pension in Either the Senex

question 33

Multiple Choice

I can invest for a pension in either the Senex or the Geriatrix pension plan. Senex requires me to invest $1500 a year for the next 15 years (beginning one year from now) , whereas Geriatrix requires an immediate deposit of $5 000 and 15 subsequent annual investment of $1 200 a year (also starting one year from now ) . If my MARR is 15%, how much greater is the equivalent uniform annual cost to me of the series of payments I would make to Geriatrix versus the series of payments I would make to Senex?

• A)$333
• B)$444
• C)$555
• D)$666
• E)$777

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Definitions:

Periodicals

Publications, such as magazines or journals, that are issued at regular intervals over time.

Dipole Moments

A measure of the separation of positive and negative electrical charges within a molecule, affecting the molecule's polarity.

Carboxylic Acids

Organic compounds characterized by the presence of a carbonyl group (C=O) bonded to a hydroxyl group (-OH).

Amino Acids

The building blocks of proteins, consisting of an amino group, a carboxylic acid group, and a unique side chain.