John Is Planning to Go to Graduate School in a Program

question 31

Multiple Choice

John is planning to go to graduate school in a program that will take three years.John wants to have $10,000 available each year for his school and living expenses.If he earns 6% on his investments,how much must be deposited at the start of his studies for him to withdraw $10,000 a year for three years?

• A)$10,000
• B)$18,390
• C)$26,730
• D)$29,100
• E)$30,000

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Definitions:

Compulsion

A repetitive and rigid behavior or mental act that persons feel driven to perform in order to prevent or reduce anxiety.

Repetitive Behavior

Actions repeated over and over again, which can be a symptom of several disorders, including OCD and autism spectrum disorders.

Mental Act

A process or activity carried out by the mind, such as thinking, reasoning, or remembering.

Panic Attack

A sudden episode of intense fear or acute discomfort, accompanied by physical symptoms such as heart palpitations, dizziness, and shortness of breath.