Ali Shah Sets Aside 2,000 Each Year for 5 Years

question 58

Multiple Choice

Ali Shah sets aside 2,000 each year for 5 years. He then withdraws the funds on an equal annual basis for the next 4 years. If Ali wishes to determine the amount of the annuity to be withdrawn each year, he should use the following two tables in this order:

• A) present value of an annuity of $1; future value of an annuity of $1
• B) future value of an annuity of $1; present value of an annuity of $1
• C) future value of an annuity of $1; present value of a $1
• D) future value of an annuity of $1; future value of a $1

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Definitions:

Animal Communication

The transmission of information from one animal to another, such as through sounds, visual displays, or chemical signals, to influence behavior or social interactions.

Instinct

Instinct refers to the innate, typically fixed patterns of behavior in animals that are responses to specific stimuli, guiding survival and reproductive actions.

Innate Behavior

A type of behavior that is hard-wired and genetically coded, manifesting without the need for learning or experience.

Altruism

A selfless act of concern for the well-being of others, often at a personal cost.