Two Sisters Each Open IRAs in 2011 and Plan to Invest

question 81

Multiple Choice

Two sisters each open IRAs in 2011 and plan to invest $3,000 per year for the next 30 years.Mary makes her first deposit on January 1,2011,and will make all future deposits on the first day of the year.Jane makes her first deposit on December 31,2011,and will continue to make her annual deposits on the last day of each year.At the end of 30 years,the difference in the value of the IRAs (rounded to the nearest dollar) ,assuming an interest rate of 7% per year,will be

• A) $19,837.
• B) $12,456.
• C) $6,300.
• D) $210.

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

G. Stanley Hall

A pioneering American psychologist and educator, known for his work in child development and educational psychology.

John Watson

An American psychologist considered one of the founders of behaviorism; he emphasized the study of observable behavior over the study of the mind.

Leo Kanner

An Austrian-American psychiatrist known for his work in child psychiatry, notably for being the first to describe autism as a distinct neurodevelopmental disorder in 1943.