Anita Contributes a Lump Sum of $50,000 and $350 Per

question 126

Multiple Choice

Anita contributes a lump sum of $50,000 and $350 per month in an investment earning 5.5% compounded monthly over a 10-year period. At the end of the 10th year, Anita plans to transfer her investment into another account where she can withdraw $4,000 per quarter for 10 years and still have $10,000 remaining. Based on quarterly compounding, determine what the rate of interest that will achieve this goal.

• A) 2.39%
• B) 2.89%
• C) 3.39%
• D) 4.39%
• E) 4.89%

---

Definitions:

Syphilis

A sexually transmitted bacterial infection known for its varying stages and health effects if left untreated.

Statute Of Limitations

A statute prescribing a period of limitations for bringing certain kinds of legal action.

Tort

A civil wrong or breach of duty to another person, as defined by law, that results in harm or injury, leading to legal liability.

Misdemeanor

A lesser crime than a felony, punishable by a fine and/or county jail time for up to one year.