You Are Going to Pay $100 into an Account at the Beginning

question 147

Multiple Choice

You are going to pay $100 into an account at the beginning of each of the next 40 years.At the beginning of the 41st year you buy a 30 year annuity whose first payment comes at the end of the 41st year (the accounts earn 12%) .How much will you receive at the end of the 41st year (i.e.,the first annuity payment) .Round to nearest $100.

• A) $93,000
• B) $7,800
• C) $11,400
• D) $10,700

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Definitions:

Population Efficacy

The effectiveness of a treatment or intervention when applied to a broad population under 'real-world' conditions.

Interventions

Actions or processes conducted to modify an outcome or conditions in a study or therapeutic context.

Random Sample

A subset of a statistical population in which each member of the subset has an equal probability of being chosen.

Validity Establishment

The process of demonstrating that an assessment or study measures what it is intended to measure and is applicable for its intended purpose.