What Amount Would You Have to Invest Now at 10

question 12

Multiple Choice

What amount would you have to invest now at 10% compounded semi-annually in order to make withdrawals of $3,500 every half-year for eight years? The first withdrawal is to be made in six months.

• A) $52,224
• B) $28,000
• C) $37,932
• D) $36,126
• E) $8,255

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Definitions:

Satirical

Characterized by the use of irony, sarcasm, ridicule, or the like, in exposing, denouncing, or deriding vice, folly, etc.

Compensatory Damages

Damages that will compensate a part for direct losses due to an injury suffered.

Injured Party

An individual or entity that has suffered harm or damage due to another’s actions or negligence.

Tort Case

A legal case involving civil wrongs not arising out of contractual obligations.