It Is January 1st and Darwin Davis Has Just Established

question 93

Multiple Choice

It is January 1st and Darwin Davis has just established an IRA (Individual Retirement Account) .Darwin will put $1000 into the account on December 31st of this year and at the end of each year for the following 39 years (40 years total) .How much money will Darwin have in his account at the end of the 40^th year? Assume that the account pays 12% interest compounded annually and round to nearest $1000.

• A)$93,000
• B)$766,000
• C)$767,000
• D)$850,000

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Definitions:

Consequential Damages

These refer to indirect losses that result from a breach of contract, which were foreseeable and a direct consequence of the breach, such as lost profits or revenue.

Nominal Damages

Damages that are recoverable when a legal right is to be vindicated against an invasion that has produced no actual present loss.

Economic Loss

Financial damage that a person or entity suffers, which may include lost profits, costs of repair or replacement, and loss of use or opportunity.

Consequential Damages

Damages that are not a direct result of an act but are a secondary consequence, such as loss of future income.