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:

Long-Term Profits

The sustained earnings a company generates over an extended period, indicating its financial health and stability.

Product Excellence

Involves a focus on achieving high-quality products; effective branding and positioning is key.

In-Flight Entertainment

Systems provided by airlines to entertain passengers during flights through movies, TV shows, music, games, and internet connectivity.

Locational Excellence

A method of achieving excellence by having a strong physical location and/or Internet presence.