The Solution to This Problem Requires Time Value of Money

question 26

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations.
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Kingston inherited $140,000 from an aunt.If Kingston decides not to spend his inheritance but to leave the money in his savings account until he retires in 15 years,how much money will he have assuming an annual interest rate of 8%,compounded semiannually?

• A)$308,000
• B)$509,880
• C)$454,020
• D)$7,851,900

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Definitions:

Social Anxiety

The fear of social situations that involve interaction with other people, often driven by the fear of being judged or embarrassed.

Psychological Loneliness

A state of mind characterized by a significant discrepancy between desired and actual social relationships, leading to feelings of isolation.

Intrapersonal Loneliness

A state of feeling alone and isolated due to a lack of close or meaningful personal relationships.

Interpersonal Loneliness

A feeling of isolation or lack of connection experienced at the level of personal interactions and relationships.