It Is January 1st and Darwin Davis Has Just Established

question 13

Multiple Choice

It is January 1st and Darwin Davis has just established an IRA (Individual Retirement Account) . Darwin will put $1,000 into the account on December 31st of this year and at the end of each year for the following 39 years (40 years total) . How much money will Darwin have in his account at the beginning of the 41st year? Assume that the account pays 12% interest compounded annually, and round to the nearest $1,000.

• A) $93,000
• B) $766,000
• C) $767,000
• D) $850,000

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Definitions:

Social Class

A division of society based on economic status, occupation, and education, influencing people's opportunities and lifestyle.

Emergency Room Doctor

A physician specialized in emergency medicine, providing urgent care and lifesaving interventions to patients in the emergency department of hospitals.

On-Call

A status indicating availability to work or respond to work-related inquiries and tasks spontaneously, outside regular working hours, often in emergency situations or to provide services as needed.

Social Class

A division of a society based on social and economic status, influencing access to resources and opportunities.