You Estimate You'll Need $200,000 Per Year for 25 Years

question 16

Multiple Choice

You estimate you'll need $200,000 per year for 25 years starting on your 65th birthday to live on during your retirement.Today is your 50th birthday and you want to make equal deposits into an account paying 9% interest per year,the first deposit today and the last deposit on your 64th birthday.How much must each deposit be (rounded to the nearest $10) ?

• A) $99,920
• B) $85,840
• C) $66,909
• D) $49,380

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Definitions:

Perceptual Constancies

A phenomenon in psychology where our perception of an object's characteristics (such as size, shape, and color) remains constant despite changes in the sensory input.

Size Constancy

The perceptual understanding that an object's size remains the same despite changes in the distance from which it is viewed.

Shape Constancy

The ability of the visual perception system to recognize an object's shape despite its orientation or the angle from which it is viewed.

Brightness Constancy

The psychological phenomenon where the perceived brightness of an object remains constant despite changes in the illumination conditions.