A Principal Sum of Money P Is Invested at the End

question 3

Multiple Choice

A principal sum of money P is invested at the end of each year in an annuity earning annual interest at a rate of r . The amount in the annuity account will be A dollars after n years, where $n = \frac { \log \left( \frac { A v } { P } + 1 \right) } { \log ( 1 + r ) }$ If $2,000 is invested each year in an annuity earning 9% annual interest, how long will it take for the account to be worth $15,000? Round the answer to the nearest tenth of the year.

• A)7.5 years
• B)6.0 years
• C)4.2 years
• D)6.7 years
• E)5.1 years

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Definitions:

Masters and Johnson

A research team known for their work in the field of human sexuality, studying the sexual response cycle and sexual disorders.

Sexual Response Cycle

The four stages of sexual responding described by Masters and Johnson—excitement, plateau, orgasm, and resolution.

Refractory Period

The period immediately following a stimulus during which a nerve or muscle is unresponsive to further stimulation.

Physiological Arousal

Refers to the body's physical response to stimuli, which can include increased heart rate, sweating, or rapid breathing.