Mark Invests in a 10-Year Annuity with an Initial Payment

question 21

Multiple Choice

Mark invests in a 10-year annuity with an initial payment of $20,000,that grows at 4% per year.What is the future value of this annuity,if the interest rate is 8%?

• A)$200,000
• B)$339,340.36
• C)$157,180.24
• D)$162,217.92
• E)$350,216.31

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Definitions:

Absolute Threshold

The minimum intensity of stimulation that must occur before you experience a sensation.

Sensory Threshold

The minimum level of stimulus intensity needed for a stimulus to be detected, marking the boundary between the sensory signal's absence and presence.

Extrasensory Perception

The claimed ability to gain information through means other than the known human senses.

Absolute Threshold

The minimum intensity of a stimulus that one can perceive, marking the boundary between detectable and undetectable levels of sensory input.