MrsSmith Makes 20 Annual Deposits of $2000 into a Retirement

question 11

Multiple Choice

Mrs.Smith makes 20 annual deposits of $2000 into a retirement savings account,first deposit made today.If she earns j₁ = 5% on her money,how much does she have 25 years from today?

• A)$66,131.91
• B)$84,402.94
• C)$88,623.08
• D)$95,454.20

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Definitions:

Possible

That which can be done or achieved; within the limits of ability, capacity, or realization.

Standard Error

A measure of the dispersion or variation of sample means around the population mean.

Sample Correlation

A statistical measure that indicates the degree to which two variables change together, based on a sample of data, showing whether the relationship is positive, negative, or nonexistent.

Bootstrap

A statistical method involving resampling with replacement to estimate properties or accuracy of a model.