You Have a Goal to Raise $1000 in Four Years

question 36

Multiple Choice

You have a goal to raise $1000 in four years' time.If your mother gives you $400 at the end of the first year,you make six deposits of equal amounts every six months thereafter,and all the money is deposited in a bank,which pays 8% p.a. ,compounded semi-annually,how large must each of the six payments be for you to reach your target?

• A)$74.46
• B)$65.55
• C)$82.74
• D)$77.26

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Definitions:

Eustachian Tube

The Eustachian Tube is a narrow passage connecting the middle ear with the nasopharynx, helping to equalize air pressure on either side of the eardrum.

OM

An abbreviation commonly used for Otitis Media, an infection or inflammation of the middle ear.

BC

Before Christ, a time designation used to represent years before the start of the Gregorian calendar era.

Decibels

A unit of measurement for the intensity of sound, indicating the level of noise.