Calculate the Amount of Money That Must Be Deposited at the End

question 7

Multiple Choice

Calculate the amount of money that must be deposited at the end of every three months into an account paying 6% compounded monthly to accumulate to $12 500.00 in ten years.

• A) $293.75
• B) $80.77
• C) $304.94
• D) $229.97
• E) none of the above

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Definitions:

Rule of Thumb

A widely used guideline or principle that is not strictly accurate or reliable for every situation but provides a good general estimate.

Isostatic Rebound

Uplifting caused by the removal of weight on top of the crust, as when an ice sheet melts away or when erosion strips material off the top of a thick crustal root of a mountain.

Ice Sheet

A large mass of glacier ice that covers an area of over 50,000 square kilometers, often found in polar regions.

Crustal Root

The downward extension of the Earth's crust into the mantle beneath mountain ranges, helping to support the elevation of the mountains above.