Xiao Xin Is Planning to Accumulate $40,000 by the End

question 66

Multiple Choice

Xiao Xin is planning to accumulate $40,000 by the end of 5 years by making 5 equal annual deposits. If she plans to make her first deposit today and can earn an annual compound rate of 9 percent on her investment, how much must each deposit be in order to accumulate the $40,000?

• A) $ 6,132
• B) $ 6,684
• C) $23,844
• D) $ 9,434

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Definitions:

Aggressive Braking

The act of applying the vehicle's brakes forcefully and rapidly, often leading to abrupt deceleration and increased wear on brake components.

Hub-Piloted

A type of wheel mounting system on vehicles where the hub centers the wheel and bears the weight, improving alignment and stability.

Truck Disc Wheels

Wheels made for trucks that feature a flat disc design, commonly constructed from steel or aluminum, providing support for the tire.

Alignment Problems

Issues affecting a vehicle’s wheel alignment, which can lead to uneven tire wear, steering difficulties, and reduced fuel efficiency.