As Jorge Starts Working Now at the Age of 20

question 185

Multiple Choice

As Jorge starts working now at the age of 20, he decides to make regular contributions to a savings account.He wants to accumulate enough by age 55 to fund an annuity of $6,200 per month until age 80.
What should his monthly contributions be? Assume that both accounts pay 7.25%, compounded
Monthly.Round to the nearest cent.

• A)$444.62
• B)$448.62
• C)$439.62
• D)$426.19
• E)$462.62

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Definitions:

First Quartile

The value below which 25% of the observations fall, marking the lower quarter of the data set.

Median

The middle value in a sorted list of numbers, dividing the dataset into two halves.

Third Quartile

A statistical term which represents the 75th percentile of a dataset, indicating that 75% of the data points fall below this value.

Box Plot

A graphical representation of data that shows the distribution's five-number summary: minimum, first quartile, median, third quartile, and maximum.