Jim Wants to Invest $5,000 at the End of Each

question 105

Multiple Choice

Jim wants to invest $5,000 at the end of each year for the next 10 years to prepare for his retirement. He believes he can earn 7% on his investments. What will the value of his investment be at the end of 10 years?
$\begin{array}{|r|l|l|l|l|l|l|}\hline \text {Future}\\\text {Value of an }\\\text { Annuity of }\\\$ 1\\ \hline &4\%&5\%&6\%&7\%&8\%&9\%\\\hline1 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 \\\hline 2& 2.040 & 2.050 & 2.060 & 2.070 & 2.080 & 2.090 \\\hline 3 & 3.129 & 3.153 & 3.184 & 3.215 & 3.246 & 3.278 \\\hline 4 & 4.246 & 4.310 & 4.375 & 4.440 & 4.506 & 4.573 \\\hline 5 & 5.416 & 5.526 & 5.637 & 5.751 & 5.867 & 5.985 \\\hline 6 & 6.63 & 6.80 & 6.97 & 7.153 & 7.336 & 7.523 \\\hline 7 & 7.898 & 8.142 & 8.394 & 8.654 & 8.923 & 9.200 \\\hline 8 & 9.214 & 9.549 & 9.897 & 10.26 & 10.64 & 11.03 \\\hline 9 & 10.58 & 11.03 & 11.49 & 11.98 & 12.49 & 13.02 \\\hline 10 & 12.01 & 12.58 & 13.19 & 13.82 & 14.49 & 15.19 \\\hline\end{array}$

• A) $61,060
• B) $69,900
• C) $62,650
• D) $69,100

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Definitions:

Multidimensional Development

The concept that human development involves multiple aspects—physical, cognitive, emotional, and social—that interact and influence each other.

Multidirectional Development

The concept that human development occurs in different directions, indicating varying changes (both gains and losses) throughout the lifespan.

Changing Resource Allocations

The process of adjusting how resources, such as time, money, or personnel, are distributed or utilized in response to different conditions or priorities.

Developmental Context

The combination of biological, psychological, and social factors that affect an individual's growth and development over time.