Mark Invests in a 10-Year Annuity with an Initial Payment

question 21

Multiple Choice

Mark invests in a 10-year annuity with an initial payment of $20,000,that grows at 4% per year.What is the future value of this annuity,if the interest rate is 8%?

• A)$200,000
• B)$339,340.36
• C)$157,180.24
• D)$162,217.92
• E)$350,216.31

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Definitions:

Selfish Herd

A concept in social evolution where individuals in a group position themselves to minimize their individual risk from predators, often leading to clumping behavior.

Leks

Social systems or gatherings in some species where males congregate to engage in competitive displays and courtship behavior to attract mates.

Sage Grouse

A species of grouse native to sagebrush ecosystems of western North America, known for their elaborate courtship rituals.

Fiddler Crabs

A type of crab known for their sexually dimorphic claws, where males possess one enlarged claw used for communication and contests during mating rituals.