As Jorge Starts Working Now at the Age of 22

question 260

Multiple Choice

As Jorge starts working now at the age of 22, he decides to make regular contributions to a savings account.He wants to accumulate enough by age 55 to fund an annuity of $6,500 per month until age 80.
What should his monthly contributions be? Assume that both accounts pay 8.75%, compounded
Monthly.Round to the nearest cent.

• A)$357.94
• B)$326.74
• C)$343.94
• D)$334.94
• E)$339.94

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Definitions:

Compact Bone

The dense, hard outer layer of bone that provides strength and support and contains passageways for blood vessels and nerves.

Red Bone Marrow

A type of bone marrow that produces red blood cells, white blood cells, and platelets.

Blood Forming Cells

Cells found primarily in the bone marrow that give rise to all the blood cells including red blood cells, white blood cells, and platelets.

Upper Limbs

Refers to the part of the body that includes the arm, forearm, wrist, and hand.