Solve the Problem. Round to the Nearest Cent

question 64

Multiple Choice

Solve the problem. Round to the nearest cent.
-Larry wants to start an IRA that will have $620,000 in it when he retires in 26 years. How much should he invest semiannually in his IRA to do this if the interest is 6% compounded semiannually?

• A) $5094.65
• B) $3969.83
• C) $16,081.74
• D) $5081.65

---

Definitions:

Catastrophizing

An irrational thought process where an individual believes something is far worse than it actually is, often leading to increased anxiety and stress.

Conformity

Behaving in a way that meets a specified standard, in coordination with a group.

Stage of Exhaustion

The phase in stress response where the body and mind are overwhelmed by stressors, leading to reduced function and possible burnout.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when under stress, as proposed by Hans Selye.