Determine the Principal P (To the Nearest Cent)that Will Yield

question 29

Multiple Choice

Determine the principal P (to the nearest cent) that will yield a balance of A=2,500,000 dollars when invested at rate r=11% for 40 years, compounded once per year. Round the answer to two decimal places.

• A)$56,306.31
• B)$568,181.82
• C)$68,460.62
• D)$55,625.00
• E)$38,461.03

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Definitions:

Official Statistics

Quantitative data gathered and published by government agencies or other public bodies to inform analysis and decision making.

Income Distribution

The way in which a nation’s total GDP is spread amongst its population, impacting the standard of living and degree of inequality among the populace.

Poorest Quintile

The segment of the population that falls in the bottom 20% in terms of income distribution.

Income

Income is the money received, especially on a regular basis, for work or through investments.