Stacey Has $5,000,000 on Deposit in a Fund That Earns

question 22

Multiple Choice

Stacey has $5,000,000 on deposit in a fund that earns 9% interest compounded annually. How much can Stacey withdraw annually from the fund in ten equal annual withdrawals to completely deplete the fund after the tenth draw, assuming the first withdrawal occurs one year from today?

• A) $450,000
• B) $714,771
• C) $779,100
• D) $555,555

---

Definitions:

Motherese

The simplified and exaggerated speech style used by adults when talking to babies and young children, also known as child-directed speech.

Gender-Assuming Term

Language or terms that imply or assign a gender to a person or a group, sometimes leading to stereotypes or biases.

Familiar Objects

Items or things that are well known or recognized by someone due to frequent exposure or inherent knowledge.

Linguistic Relativity Hypothesis

A theory suggesting that the structure of a language affects its speakers' worldview or cognition.