Determine the Amount That Must Be Deposited Today in Order

question 113

Multiple Choice

Determine the amount that must be deposited today in order for an investor to withdraw $400 per month for 3 years and have $10,500 remaining.Interest is assumed to be 6.45% compounded annually.

• A)$19,190
• B)$20,694
• C)$21,801
• D)$22,522

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Definitions:

Leadership

The action of leading a group of people or an organization, or the ability to do this by inspiring and influencing others.

Authority

The power or right granted to an individual or organization to make decisions, enforce rules, and command obedience.

Authoritarian

Characterized by strict obedience to authority at the expense of personal freedom.

Goals and Policies

Objectives or targets that are aimed to be achieved, and the principles or rules that guide the actions to reach these goals.