You Just Graduated, and You Plan to Work for 10

question 19

Multiple Choice

You just graduated, and you plan to work for 10 years and then to leave for the Australian "Outback" bush country.You figure you can save R1,000 a year for the first 5 years and R2,000 a year for the next 5 years.These savings cash flows will start one year from now.In addition, your family has just given you a R5,000 graduation gift.If you put the gift now, and your future savings when they start, into an account which pays 8 percent compounded annually, what will your financial "stake" be when you leave for Australia 10 years from now?

• A) R21,432
• B) R28,393
• C) R16,651
• D) R31,148
• E) R20,000

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Definitions:

Distal Stimulus

An object or event in the external world that contributes to the sensory input, ultimately perceived and interpreted by the sensory organs after processing.

Light Waves

Electromagnetic waves that are visible to the human eye, responsible for the sense of sight.

Kinesethesis

The sense that detects body position, weight, or movement of the muscles, tendons, and joints.

Transduction

The process through which a physical stimulus is converted into a signal within the nervous system.