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

question 92

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) $ 6,683
• C) $23,844
• D) $ 9,434

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Definitions:

Beta Cells

Cells located in the pancreas that produce insulin, which regulates blood glucose levels.

Alpha Cells

Cells found in the pancreas that produce glucagon, a hormone involved in the regulation of blood glucose levels.

Delta Cells

Cells found in the pancreas that produce somatostatin, a hormone that inhibits the release of numerous other hormones.

Somatostatin

A hormone that inhibits the release of several other hormones, such as growth hormone and insulin, playing a crucial role in regulating the endocrine system and cell proliferation.