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:

Later IQ Scores

Measures of intellectual ability or cognitive capacity obtained at a later stage, potentially influenced by early life experiences and education.

Visual Recognition Memory

The kind of memory shown in an infant’s ability to discriminate previously seen objects from novel objects.

Vocal Tract

The part of the human anatomy that includes the oral cavity, pharynx, nasal passages, and the structures within them, which together facilitate the production of speech sounds.

Highly Specific

Referring to something that is precisely or strictly identified or defined.