Present and Future Value Tables of $1 at 3% Are

question 19

Multiple Choice

Present and future value tables of $1 at 3% are presented below:

-Jimmy has $255,906 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place at the end of each year starting a year from now. How soon will the fund be exhausted if Jimmy withdraws $30,000 each year?

• A) 11 years.
• B) 10 years.
• C) 8.5 years.
• D) 8.8 years.

---

Definitions:

Rovee-Collier

A reference to Carolyn Rovee-Collier, known for her research in infant memory and learning capabilities.

Experiment

A research method in which the researcher adds one variable (called the independent variable) and then observes the effect on another variable (called the dependent variable) in order to learn if the independent variable causes change in the dependent variable.

Memory Session

A period dedicated to memorizing or recalling information from one's past experiences.

Binocular Vision

The ability to focus the two eyes in a coordinated manner in order to see one image.